Documentary Stamp Tax Law

The Documentary Stamp Tax is a tax imposed on certain legal documents, such as deeds, mortgages, and other financial agreements, at the state or local level. When these documents are executed or recorded, a fee is charged based on the transaction's value. This tax helps generate revenue for state and local governments. The rate and specific rules can vary by jurisdiction. Essentially, it's a way for the government to collect funds through formal documentation involved in property and financial transactions.