Which statement correctly describes the relationship between Georgia's intangible recording tax and the real estate transfer tax?
Correct Answer
A) The intangible recording tax is imposed on the note, not on the deed, and uses a different rate and tax base from the transfer tax.
Under Georgia law, the intangible recording tax (O.C.G.A. § 48-6-61) and the real estate transfer tax (O.C.G.A. § 48-6-1) are two distinct taxes. The intangible recording tax is imposed on long-term notes secured by real property at $1.50 per $500 of the face amount of the note, while the transfer tax is imposed on the deed at $1.00 per $1,000 of the actual sale price. They differ in what is taxed (note vs. deed), the tax base (loan amount vs. sale price), and the rate.
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More Ga Property Tax Questions
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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?
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Karen is representing a seller in a transaction where the buyer is paying cash with no financing. Which of the following taxes will NOT be due at this closing?
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A Georgia licensee is preparing a closing statement that includes both a deed transfer tax and an intangible recording tax. Which statement correctly describes how these two charges relate to each other?