Where this fits on the exam
| 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
- Check the recording-presentation date and whether any principal is due beyond the applicable 62-month line. Confirm Georgia real estate secures the note and no exemption applies.
- 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.
- A. Incorrect. $312.30 applies a transfer-tax-style rate to the note instead of intangible tax.
- B. Incorrect. $936 counts only 624 whole $500 units and drops the fractional unit.
- C. Incorrect. $936.90 multiplies 624.6 unrounded units even though each fraction counts as a full unit.
- D. Correct. 624.6 rounds up to 625 statutory units; 625 times $1.50 is $937.50.
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.
- A. Incorrect. $300 taxes the $100,000 down payment instead of the $400,000 note.
- B. Incorrect. $400 applies an approximate transfer-tax rate to the note, not $1.50 per $500.
- C. Correct. The $400,000 note contains 800 $500 units, and 800 times $1.50 is $1,200.
- D. Incorrect. $1,500 applies intangible tax to the purchase price rather than the qualifying 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.
- A. Incorrect. $8,500 applies a transfer-tax-style rate instead of the intangible-tax rate and cap.
- B. Incorrect. $17,000 is the unit count before the $1.50 rate is applied.
- C. Correct. The calculated $25,500 exceeds the single-note cap, so the tax is $25,000.
- D. Incorrect. $25,500 is the uncapped calculation and cannot be charged on this single note.
Question 4A $200,000 note and its security deed are both dated August 1, 2026. All principal is due exactly 62 months later, with no later maturity. The security deed is presented for recording that month. Does the note qualify as long term for Georgia intangible recording tax?
- A. Yes, because 62 months meets the long-term threshold
- B. No, because no principal is due more than 62 months later
- C. Yes, because every recorded security deed is taxable
- D. No, because the note amount is below $250,000
Show answer and explanation →
Answer: B. No, because no principal is due more than 62 months later
The current definition requires principal due more than 62 months from the relevant date. Exactly 62 months is within the nontaxable maturity boundary, so this note is not long term for intangible recording tax. The result turns on maturity, not the $200,000 balance.
- A. Incorrect. The definition says more than 62 months, not 62 months or more.
- B. Correct. Both instruments have the same date and no principal falls due beyond 62 months, so the note does not meet the definition.
- C. Incorrect. Recording a security deed does not make every note long term or defeat an exemption.
- D. Incorrect. There is no $250,000 minimum note amount in this maturity test.
Question 5A $200,000 note and its security deed are both dated August 1, 2026. Some principal is due 63 months later. The security deed is presented for recording that month, and no exemption applies. What intangible recording tax is due?
- A. $0
- B. $200
- C. $600
- D. $25,000
Show answer and explanation →
Answer: C. $600
Principal due at 63 months is due more than 62 months after both instruments' dates, so the note qualifies. The face amount contains 400 units of $500. At $1.50 per unit, the tax is $600, below the single-note cap. The tax uses the face amount, not just the final installment.
- A. Incorrect. Principal due at 63 months crosses the long-term threshold, and the question excludes an exemption.
- B. Incorrect. $200 uses a transfer-tax-style rate rather than $1.50 per $500.
- C. Correct. The qualifying $200,000 face amount produces 400 units times $1.50, or $600.
- D. Incorrect. $25,000 is the maximum, not a flat charge on every long-term note.
Question 6A $200,000 note and security deed were both signed June 15, 2025. All principal falls due 60 months after that date. The security deed is presented for recording July 2, 2025. Which rule applies for intangible recording tax?
- A. The older definition applies because the instruments were signed before July 1
- B. The 62-month definition applies, so this 60-month note is not long term
- C. The note is taxed because 60 months exceeds the former three-year line
- D. The 62 months run from July 2, the recording-presentation date
Show answer and explanation →
Answer: B. The 62-month definition applies, so this 60-month note is not long term
DOR Bulletin 2025-02 applies the new definition to instruments presented for recording on or after July 1, 2025, including instruments executed earlier. July 2 therefore selects the 62-month rule. Maturity is measured from the note or securing instrument date, and 60 months does not exceed 62, so this note is not subject to intangible recording tax.
- A. Incorrect. The pre-July execution date does not preserve the older definition when presentation occurs on or after July 1.
- B. Correct. Presentation on July 2 selects the current definition, and the 60-month maturity does not meet it.
- C. Incorrect. The former three-year line does not govern an instrument presented for recording on this date.
- D. Incorrect. Presentation selects the rule; it does not become the starting date for measuring the note's maturity.
Question 7Change only the recording-presentation date in the previous scenario. The $200,000 note and security deed were signed June 15, 2025, all principal is due 60 months later, and the security deed was presented for recording June 30, 2025. With no exemption, what intangible recording tax applies?
- A. $0, because the later 62-month definition applies retroactively
- B. $400
- C. $600
- D. $1,200
Show answer and explanation →
Answer: C. $600
Presentation before July 1, 2025, uses the former long-term-note definition: principal due more than three years after the instrument date. A 60-month note meets that definition. The $200,000 face amount contains 400 units of $500, so tax is 400 × $1.50 = $600. Changing the presentation date changes the applicable definition.
- A. Incorrect. The 62-month definition applies to presentation on or after July 1, 2025, not to this June 30 presentation.
- B. Incorrect. $400 counts the $500 units but omits the $1.50 tax per unit.
- C. Correct. The former definition makes this 60-month note taxable, and 400 units at $1.50 total $600.
- D. Incorrect. $1,200 uses $3 per $500 rather than the $1.50 rate.
Ready to move on?
You have this calculation down when all of these are true.
- I distinguish exactly 62 months from principal due more than 62 months later.
- I use the recording-presentation date to select the current rule, even when the instruments were signed earlier.
- 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.