State, Department of Revenue v. Bonard Enterprises, Inc.

We affirm the trial court’s summary final judgment holding that appellee’s mortgage assumption agreement was not subject to documentary stamp taxes under section 201.08, Florida Statutes (1985), where, as here, there had been no release of the original mortgagor. We adopt the rationale of 1975 Op.Att’y Gen.Fla. 075-154 (June 3, 1975), which was as follows:

There remains a single written obligation to pay that is not increased and the assumption operates merely as additional security for its payment. However, when the assumption agreement releases the mortgagor, a novation has occurred with the…