Bank of America Tax Suit Evidence Permissible, Judge Suggests

A Florida appeals court judge suggested during oral arguments that the state waived an evidentiary argument against Bank of America N.A. in a dispute over a $5.2 million exemption in mortgage transaction taxes.

Bank of America said it refinanced nearly 10,000 new home equity loans and mortgages. Whatever the monetary difference is between the original loans and the refinanced ones is the only amount subject to tax, the company said Tuesday.

The two types of contested taxes here are the documentary stamp tax, which is imposed on the recording of mortgages, and the nonrecurring intangible tax, which is imposed on ...