What is the documentary stamp tax that must be paid on a deed for a property sold at $199,990 with 10% down?

The documentary stamp tax on a deed is calculated based on the consideration paid for the property, specifically the purchase price, not the amount of the down payment. In Florida, the documentary stamp tax is typically assessed at a rate of $0.70 per $100 of the transaction value.

To compute the documentary stamp tax for a property sold at $199,990, you first divide the sale price by 100 and then multiply that result by the tax rate.

1. Take the property price: $199,990.

2. Divide by 100 to find how many hundreds there are: $199,990 ÷ 100 = 1,999.90.

3. Multiply the result by the documentary stamp tax rate of $0.70: 1,999.90 x $0.70 = $1,399.93.

When rounding to the nearest dollar, this becomes $1,400. Hence, the correct answer reflects an understanding of the documentary stamp tax calculation, based on the total sale price of the property rather than the down payment amount.