What is the exam-ready answer?
| Official syllabus topic | Georgia Supplement III.A Finance and III.B Closing Procedures |
|---|---|
| Official PSI area | Finance and Closing |
| Published weight | 15 of the 52 Georgia questions |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.
Formula and variables
| Symbol or term | Meaning |
|---|---|
| Note face amount | The principal face amount of the qualifying long-term note secured by Georgia real estate |
| $500 statutory units | The note amount divided by $500, with any fractional unit rounded up |
| Cap | $25,000 maximum tax on any single note |
Step-by-step method
- Confirm the problem describes a qualifying long-term note secured by Georgia real estate.
- Use the note's face amount, not the sale price, assessed value, or equity.
- Divide by $500 and round any fractional unit up.
- Multiply the unit count by $1.50.
- Compare the result with the $25,000 single-note cap and use the lower amount.
Georgia-specific distinction
Worked examples
Example 1: Fractional $500 unit
Scenario. A qualifying secured note has a face amount of $320,250.
- $320,250 / $500 = 640.5 units.
- Round up to 641 statutory units.
- Tax = 641 x $1.50 = $961.50.
Answer. The intangible recording tax is $961.50.
Reasonableness check. The tax is about $3 per $1,000 of note amount, so roughly $960 is reasonable.
Example 2: Apply the cap
Scenario. A single qualifying note has a face amount of $9,000,000.
- $9,000,000 / $500 = 18,000 units.
- 18,000 x $1.50 = $27,000.
- The calculated amount exceeds the $25,000 cap.
Answer. The tax is capped at $25,000.
Reasonableness check. A cap question is incomplete until the calculated amount is compared with the maximum.
Common exam traps
- Using the property's sale price instead of the note face amount
- Rounding a fractional $500 unit down
- Forgetting the $25,000 cap on a single note
- Calling transfer tax and intangible recording tax the same charge
Original practice questions with detailed explanations
These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.
Question 1A qualifying long-term note secured by Georgia real estate has a face amount of $312,300. What is the intangible recording tax?
- A. $312.30
- B. $936.00
- C. $936.90
- D. $937.50
Show answer and explanation →
Answer: D. $937.50
$312,300 / $500 = 624.6 units, and any fractional unit counts, so 625 x $1.50 = $937.50. $936.00 rounds the units down to 624. $936.90 multiplies the unrounded 624.6 units, skipping the round-up.
Question 2A Georgia buyer pays $500,000, puts $100,000 down, and signs a $400,000 qualifying long-term note secured by the property. What is the intangible recording tax?
- A. $300
- B. $400
- C. $1,200
- D. $1,500
Show answer and explanation →
Answer: C. $1,200
The base is the note: $400,000 / $500 = 800 units, and 800 x $1.50 = $1,200. $1,500 uses the $500,000 sale price, the transfer-tax base. $400 applies the transfer-tax rate of about $1 per $1,000 to the note.
Question 3A single qualifying long-term note secured by Georgia real estate has a face amount of $8,500,000. What is the intangible recording tax?
- A. $8,500
- B. $17,000
- C. $25,000
- D. $25,500
Show answer and explanation →
Answer: C. $25,000
$8,500,000 / $500 = 17,000 units, and 17,000 x $1.50 = $25,500, which exceeds the $25,000 cap on a single note. The tax is therefore $25,000. $25,500 stops before comparing the result with the cap.
Ready to move on?
You have this calculation down when all of these are true.
- I identify the note amount as the tax base.
- I round every fractional $500 unit up.
- I compare the calculated tax with the $25,000 cap.
- I distinguish the holder's statutory obligation from cost allocation.
- I can contrast intangible recording tax with transfer tax in one sentence.
Recommended next lesson
Continue with Mortgage Payment and PITI Questions. After the one-time tax on the note at closing, the next lesson builds the monthly payment on that same loan, adding one-twelfth of the annual taxes and insurance.
Return to the complete calculation hub, formula sheet, or mixed math drill.