Georgia Department of Revenue
According to the Georgia Department of Revenue website, “Every holder (lender) of a long-term note secured by real estate must record the security instrument in the county in which the real estate is located within 90 days from the date of the instrument executed to secure the note.”
The intangible tax is due when the note is recorded. According to the website, the lender may collect the amount of the tax from the borrower.
The tax rate, according to the Georgia Department of Revenue, is $1.50 (one dollar and fifty cents) for each $500 (five hundred dollars) or fractional part of the face amount of the note.
Sample Tax Calculation
Let’s say borrower takes a loan out to buy a single family house with a price of $225,000. The loan is 80% of the purchase price. The intangible tax is based on the loan amount, not the purchase price.
$225,000 x 80% = $180,000 (amount of loan)
$180,000 / $500 = 360
360 x $1.50 = $540
In this example, the Georgia Intangible Recording Tax is $540.
For more information, visit the Georgia Department of Revenue page, Intangible Recording Tax @ https://etax.dor.ga.gov/ptd/adm/taxguide/intrec.aspx
Note on Intangible Property
Intangible property cannot be seen or touched. It has no physical existence and derives its value from what it represents.
The Language of Real Estate by John W. Reilly, published by Dearborn™ Real Estate Education
The Red Book on Real Estate Contracts in Georgia by Seth G. Weissman & Ned Blumenthal, published by the Georgia Association of REALTORS®