A buyer is purchasing a condominium in Cobb County for $325,000, financing $308,750 with an FHA loan and paying $16,250 as a down payment. The buyer is also a qualifying veteran. What is the Georgia intangible recording tax due on this transaction?
Correct Answer
C) $926.25
The intangible recording tax applies to the loan amount at a rate of $1.50 per $500 (or $0.003 per dollar). Although the buyer is a qualifying veteran, the exemption from intangible recording tax applies only to VA-guaranteed loans, not to FHA loans. Since this is an FHA loan, the full loan amount is taxable. $308,750 × $0.003 = $926.25. Georgia calculates this tax on the exact loan amount without rounding up to whole $500 units.
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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?
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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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