Georgia's intangible tax on new mortgages is:
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Not applicable
The intangible tax is very much applicable in Georgia; it is a mandatory tax imposed on new mortgage loans under O.C.G.A. § 48-6-61, and stating it is 'not applicable' would be a significant legal error that could have serious consequences for a real estate transaction.
$1.50 per $500 of loan amount
$1.50 per $500 is mathematically equivalent to $3.00 per $1,000, so it is not technically wrong as a rate, but it is listed here as a separate answer choice to test whether students recognize the equivalency; the standard way the rate is expressed in Georgia law and practice is $3.00 per $1,000.
$3.00 per $1,000 of loan amount
$5.00 per $1,000 of loan amount
$5.00 per $1,000 overstates the Georgia intangible tax rate and does not correspond to any standard Georgia tax rate; this figure may be confused with transfer tax rates in other states or with combined tax calculations.
Why is this correct?
Under O.C.G.A. § 48-6-61, Georgia imposes an intangible recording tax of $3.00 per $1,000 of the face amount of a long-term note (mortgage or deed of trust) secured by real property, which is mathematically equivalent to $1.50 per $500. This tax is due at the time the security deed is recorded in the county where the property is located, and failure to pay it renders the security deed unenforceable. The rate of $3.00 per $1,000 is a fixed statutory rate and applies uniformly to new mortgage loans statewide.
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