A buyer at closing sees separate line items for ad valorem taxes, real estate transfer tax, and intangible recording tax. Which statement about these charges is correct under Georgia law?
Correct Answer
D) Ad valorem property tax, real estate transfer tax, and intangible recording tax are three distinct taxes governed by separate statutory provisions.
Georgia imposes these as three separate taxes under different statutes: ad valorem property tax is an annual tax on assessed value under O.C.G.A. § 48-5-7; real estate transfer tax is a one-time tax on the sale price under O.C.G.A. § 48-6-1; and intangible recording tax is a one-time tax on new mortgage debt under O.C.G.A. § 48-6-60. Licensees must understand that these are distinct obligations with different bases, rates, and timing.
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More Ga Property Tax Questions
A Georgia homeowner receives a notice stating that the appraised value of her property has increased significantly. She wants to dispute the valuation and also has questions about her upcoming tax bill. Which statement correctly describes how these functions are divided in Georgia?
A Georgia licensee is advising a buyer about the various tax-related costs associated with purchasing a home. The buyer asks whether the homestead exemption reduces the amount owed at closing for deed recording and transfer taxes. Which statement correctly describes how Georgia's homestead exemption functions?
In Georgia, real estate closings may involve both a real estate transfer tax on the deed and an intangible recording tax on the secured debt instrument. Which statement correctly describes the relationship between these two taxes?
In Georgia, how is the ad valorem tax on real property correctly calculated?
A 67-year-old homeowner in Fulton County currently receives the standard homestead exemption on her primary residence. She learns she may qualify for the floating homestead exemption and wants to understand how it works before applying. What is the most significant consideration she should understand about the floating homestead exemption in Georgia?
- → A Georgia homeowner is weighing whether to opt out of the floating homestead exemption. Which statement accurately describes a consequence of opting out?
- → A Georgia homeowner's property has a fair market value of $220,000. She does not qualify for any floating homestead exemption and receives only the standard $25,000 homestead exemption (applied to fair market value before the 40% assessment ratio). If the county millage rate is 15 mills, what is her annual property tax?
- → Lisa is a real estate agent helping her client understand closing costs in Gwinnett County. Her client asks about the difference between transfer tax and intangible recording tax. What should Lisa explain?
- → A Georgia homeowner has been receiving the standard homestead exemption on her primary residence in Atlanta. She sells that home and moves permanently to a property she previously used as a vacation home in Rabun County. What must she do regarding her homestead exemption?
- → Which statement about Georgia's homestead exemption framework, including provisions under House Bill 581, is correct?
- → Which statement correctly describes how real property is assessed for ad valorem tax purposes in Georgia?
- → A Georgia deed reflects a sale price of $529,900.00. Using the current Georgia deed transfer tax rate, what is the total transfer tax due on this deed?
- → A homeowner's property was assessed at $150,000 in the base year when the floating homestead exemption was established. The current assessment is $190,000, and the standard homestead exemption is $20,000. How much additional taxable value would the homeowner face if the floating exemption no longer applied, compared to retaining it?
- → A Georgia owner begins an ad valorem tax estimate with the property’s fair market value. What percentage of that value is generally used as the assessment basis under Georgia law?
- → A buyer is relocating from one Georgia county to another and asks their agent about homestead exemptions for senior citizens and veterans. Which statement about these exemptions in Georgia is correct?
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Previous Question
A Georgia owner begins an ad valorem tax estimate with the property’s fair market value. What percentage of that value is generally used as the assessment basis under Georgia law?
Next Question
A Georgia closing worksheet presents the following figures. A Georgia home has a fair market value of $315,500.00 and the applicable millage rate is 22.5 mills. Using the normal 40% assessment rule, what annual ad valorem tax amount results?