Regarding Georgia's deed transfer tax and intangible recording tax, which statement is NOT correct?
Correct Answer
C) Because both taxes appear on the same closing statement, they may be combined and calculated using a single base and a single rate.
The two taxes cannot be combined into a single calculation. Under O.C.G.A. § 48-6-1, the deed transfer tax is $1.00 per $1,000 of the sale price. Under O.C.G.A. § 48-6-61, the intangible recording tax is $1.50 per $500 ($3.00 per $1,000) of the face amount of the note. They have different bases (sale price vs. note amount), different rates, and different statutory authority, so they must always be calculated separately.
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Previous Question
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?
Next Question
A buyer in Georgia is financing $320,000 of a $400,000 purchase with a new first mortgage. How is the intangible recording tax on the buyer's note determined?