Which statement correctly describes Georgia's intangible recording tax?
Correct Answer
B) The intangible recording tax is imposed on the note, not on the deed, and uses a different rate and tax base from the real estate transfer tax.
Under O.C.G.A. § 48-6-61, Georgia's intangible recording tax is levied on long-term notes secured by real property at a rate of $1.50 per $500 (or $3.00 per $1,000) of the face amount of the note. This is entirely separate from the real estate transfer tax under O.C.G.A. § 48-6-1, which is imposed on the deed and calculated based on the property's sale price at $1.00 per $1,000. The two taxes differ in what is taxed (note vs. deed), the tax base (note face amount vs. sale price), and the rate.
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Previous Question
A buyer purchases a home for $400,000 and finances $320,000 with a new mortgage. When calculating the taxes due at closing, which statement correctly describes how Georgia's deed transfer tax and intangible recording tax should be handled?
Next Question
A Georgia buyer is purchasing a home for $350,000 and financing $280,000 with a conventional mortgage. The closing attorney must calculate both the real estate transfer tax and the intangible recording tax. Which statement correctly describes how these two taxes should be computed?