A buyer is purchasing a $450,000 home in Georgia using two loans: a $360,000 loan secured by a federal government guarantee and a $45,000 conventional second mortgage. Under O.C.G.A. § 48-6-61, instruments executed by or on behalf of the United States government are exempt from intangible recording tax. What is the total Georgia intangible recording tax due on this transaction?
Correct Answer
B) $135.00
Under O.C.G.A. § 48-6-61, instruments executed by or on behalf of the United States are exempt from Georgia intangible recording tax. The federally guaranteed loan ($360,000) qualifies for this exemption. The conventional second mortgage ($45,000) does not qualify for any exemption and is taxed at the standard rate of $1.50 per $500 (or $3.00 per $1,000). Calculation: $45,000 × ($1.50 / $500) = $135.00.
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