How is the Georgia intangible recording tax calculated?
Correct Answer
B) It is charged at $1.50 for each $500.00 or fraction thereof of the face amount of the note secured by real property, subject to a maximum tax cap on a single note.
Under O.C.G.A. § 48-6-61, Georgia's intangible recording tax is imposed at the rate of $1.50 for each $500.00 or fraction thereof of the face amount of the note or other instrument securing a long-term note secured by real property. The tax is subject to a maximum cap of $25,000 on any single note. This tax is separate from the real estate transfer tax and uses a different rate, base, and formula.
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More Ga Property Tax Questions
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?
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?
A seller paid the full annual property taxes of $3,650 on January 1st for the entire calendar year. The closing takes place on September 15th, and the seller is responsible for the day of closing. Using the 365-day method, what credit does the seller receive at closing for the buyer's share of the taxes?
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?
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- → An investment property in Georgia generates $48,000 in annual net operating income. Using the income approach with a 7% capitalization rate, an appraiser determines the property's fair market value. If the county assesses at 40% of fair market value and the total millage rate is 32.5 mills, what is the approximate annual ad valorem tax?
- → Sarah is purchasing a home in Fulton County for $285,000. The property will be financed with a new mortgage of $228,000. What is the total Georgia intangible recording tax due on this transaction?
- → 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?
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- → A property owner in Clayton County receives an assessment that appears incorrect. Which of the following would NOT be an appropriate basis for challenging the assessment under Georgia law?
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Previous Question
Marcus is closing on his first home purchase in Georgia. His lender explains that certain taxes will be due at closing. Which party is typically responsible for paying the Georgia intangible recording tax?
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Which of the following transactions would NOT be subject to the Georgia intangible recording tax?