New Florida legislation defines the term "short sale" and lowers the amount of state taxes owed when real property is sold through a short sale. When the sale price of real property is less than the outstanding debt, the state will not collect taxes on the canceled debt. Further, the state will not collect taxes on the difference between the sale price and what is owed on the property.This is good news for sellers in short sale transactions whose tax liability will be lessened by the passage of this bill. To read the full text of HB 109 click here.