The Documentary Stamp Tax is a tax imposed on certain documents that are executed, delivered, or recorded in the United States. This tax typically applies to transactions involving real estate, mortgages, and other legal documents. The rate and application of the tax can vary by state, and it is usually calculated based on the value of the transaction or the amount of the loan. When a document subject to this tax is executed, the responsible party must pay the tax to ensure the document is legally valid. Failure to pay the Documentary Stamp Tax can result in penalties or the document being deemed invalid. This tax is an important source of revenue for state and local governments.