A homeowner in Henry County is refinancing an existing mortgage. The current mortgage balance is $156,000, and the new loan amount is $175,000, which will pay off the existing mortgage and provide cash out. What is the Georgia intangible recording tax due on this refinance?
Correct Answer
B) $525.00
Under O.C.G.A. § 48-6-61, the intangible recording tax is imposed on the full face amount of a new note secured by real property at the time of recording. The tax rate is $1.50 per $500, or $0.003 per dollar. On the new loan of $175,000: $175,000 × $0.003 = $525.00. While O.C.G.A. § 48-6-61(c) provides a limited exemption for refinances where the same indebtedness is being renewed or extended without new money, this transaction involves a cash-out refinance with $19,000 in new funds beyond the existing balance. When a refinance involves new money and a new note is recorded, the full amount of the new note is subject to the intangible recording tax.
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