B-160040, FEB. 5, 1968

B-160040: Feb 5, 1968

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THE FLORIDA STATE INTANGIBLE PERSONAL PROPERTY TAX PAID INCIDENT TO THE PURCHASE OF A HOME IN MIAMI BY AN EMPLOYEE TRANSFERRED FROM JACKSONVILLE TO MIAMI IS NOT A TAX LEVIED ON A MORTGAGE BUT IS A TAX ON THE PROMISSORY NOTE IN THE HANDS OF A HOLDER WHICH NOTE IS SECURED BY A MORTGAGE AND THE FACT THAT THE TAX IS LEVIED AT THE TIME OF RECORDATION OF A REAL ESTATE TRANSACTION OR THAT IT IS CUSTOMARY FOR THE HOLDER TO PASS THE COST OF THE INITIAL TAX PAYMENT ON TO THE PURCHASER IS NOT A BASIS FOR REIMBURSING THE EMPLOYEE FOR THE TAX UNDER SEC. 4.2D OF BOB CIR. DEED OF TRUST OR OTHER LIENS AGAINST REAL PROPERTY ASSESSED UNDER CHAPTER 199 OF THE FLORIDA STATUTES ARE REIMBURSABLE UNDER SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO.

B-160040, FEB. 5, 1968

EMPLOYEES - TRANSFERS - P.L. 89-516 - HOME SALE/PURCHASE EXPENSES DECISION TO CERTIFYING OFFICER OF ESSA, DEPT. OF COMMERCE CONCERNING THE PROPRIETY OF REIMBURSING AN EMPLOYEE FOR PAYMENT OF THE FLORIDA STATE INTANGIBLE TAX ON MORTGAGE INCIDENT TO PURCHASE OF HOME IN MIAMI, FLORIDA. THE FLORIDA STATE INTANGIBLE PERSONAL PROPERTY TAX PAID INCIDENT TO THE PURCHASE OF A HOME IN MIAMI BY AN EMPLOYEE TRANSFERRED FROM JACKSONVILLE TO MIAMI IS NOT A TAX LEVIED ON A MORTGAGE BUT IS A TAX ON THE PROMISSORY NOTE IN THE HANDS OF A HOLDER WHICH NOTE IS SECURED BY A MORTGAGE AND THE FACT THAT THE TAX IS LEVIED AT THE TIME OF RECORDATION OF A REAL ESTATE TRANSACTION OR THAT IT IS CUSTOMARY FOR THE HOLDER TO PASS THE COST OF THE INITIAL TAX PAYMENT ON TO THE PURCHASER IS NOT A BASIS FOR REIMBURSING THE EMPLOYEE FOR THE TAX UNDER SEC. 4.2D OF BOB CIR. A-56.

TO MR. R. P. HOGAN:

YOUR LETTER OF DECEMBER 20, 1967, REFERENCE AD571X12, WITH ENCLOSURES, REQUESTS OUR DECISION WHETHER INTANGIBLE PERSONAL PROPERTY TAXES ON NOTES, BONDS AND OTHER OBLIGATIONS FOR THE PAYMENT OF MONEY SECURED BY MORTGAGE, DEED OF TRUST OR OTHER LIENS AGAINST REAL PROPERTY ASSESSED UNDER CHAPTER 199 OF THE FLORIDA STATUTES ARE REIMBURSABLE UNDER SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966.

AN EXAMINATION OF CHAPTER 199 OF THE FLORIDA STATUTES DISCLOSES THAT NOTES SECURED BY LIENS ON REAL PROPERTY ARE BUT ONE OF SEVERAL CLASSES OF INTANGIBLE PERSONAL PROPERTY OR CHOSES IN ACTION COVERED BY THAT CHAPTER.

IN SUMMARY THE INTANGIBLE PERSONAL PROPERTY TAXES COVERED BY THAT CHAPTER INCLUDE: CLASS A - MONEY ON DEPOSIT IN BANKS, BUILDING ASSOCIATIONS AND APPARENTLY IN ONE'S POSSESSION; CLASS B - STOCKS AND BONDS; CLASS C - SECURITIES OF THE NATURE REFERRED TO IN YOUR LETTER AND CLASS D - ALL INTANGIBLE PERSONAL PROPERTY NOT EMBRACED IN CLASSES A, B AND C.

UNDER OTHER SUBCHAPTERS OF CHAPTER 199 AN ANNUAL RETURN REPORTING ALL CLASSES OF INTANGIBLE PERSONAL PROPERTY IS REQUIRED OF THE OWNER THEREOF AND THE TAXES THEREON ARE LEVIED AND COLLECTED FROM SUCH OWNER OR OWNERS ANNUALLY.

THE TAX IS NOT ONE LEVIED ON A MORTGAGE BUT ON THE PROMISSORY NOTE IN THE HANDS OF THE HOLDER WHICH IS SECURED BY A MORTGAGE. THE MERE FACT THAT THE STATE OF FLORIDA LEVIES THE INITIAL PAYMENT OF SUCH TAX AT THE TIME OF RECORDATION OF A REAL ESTATE TRANSACTION OR THAT IT IS CUSTOMARY FOR THE HOLDER OF THE NOTE TO PASS THE COST OF SUCH INITIAL TAX PAYMENT ON TO THE PURCHASER IS NOT A BASIS FOR THE UNITED STATES TO REIMBURSE THE PURCHASER AND THUS INDIRECTLY PAY A TAX FOR WHICH THE HOLDER OF THE NOTE UNDER LAW APPEARS TO BE PRIMARILY LIABLE.

WE MUST CONCLUDE FROM THE FOREGOING THAT THE TAX FOR WHICH REIMBURSEMENT IS CLAIMED IS NOT A MORTGAGE, TRANSFER OR EXCISE TAX ON THE REAL ESTATE TRANSACTION OR "SIMILAR FEES OR CHARGES" UNDER SECTION 4.2D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56. THEREFORE, IT IS NOT LAWFULLY REIMBURSABLE TO THE CLAIMANT.

THE VOUCHER TRANSMITTED WITH YOUR LETTER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.