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Real estate glossaryGeorgia-specific rule

Intangible recording tax

Georgia intangible recording tax applies when a qualifying long-term note secured by real estate is recorded.

Exam area: Finance and Closing

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What does “intangible recording tax” mean in real estate?

Georgia intangible recording tax applies when a qualifying long-term note secured by real estate is recorded. For notes executed on or after July 1, 2025, long-term means that some principal falls due more than 62 months after the note or security instrument date. The rate is $1.50 per $500 or fraction of the note's face amount, subject to a $25,000 maximum on a single note.

How is “intangible recording tax” different from the closest wrong answer?

This tax is based on the secured note, not the property's sale price. It is separate from real estate transfer tax.

What is the Georgia-specific rule?

The holder must record the security instrument and pay the tax within 90 days. The holder may pass the tax to the borrower without treating it as a finance charge.

Worked exam example

Scenario

A buyer pays $400,000 and borrows $310,250 on a qualifying long-term note. Divide the loan by $500, round up the fraction, then multiply by $1.50.

What is the most common exam trap?

Trap correction

Candidates commonly use the sale price, round down a partial $500, or forget the statutory cap.

Original exam check

Apply the definition

A buyer pays $400,000 and signs a 30-year note for $310,250 secured by the property. What is the Georgia intangible recording tax at $1.50 per $500 or fraction of the note?

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