Change in the Intangible Tax Rule in Georgia
Georgia law requires the clerk of superior court in each county to collect an intangible recording tax when lenders record a security deed (commonly referred to as a mortgage) in the real estate records. Security deeds secure the lender’s interest in real estate as security for a promissory note. The recording tax is based on the face amount of the loan as listed on the security deed. The tax rate is $1.50 for each $500.00, or fraction thereof, of the amount listed on the security deed.
The intangible tax is only due for ‘long-term’ loans. Prior to July 1, 2025, the definition of a ‘long-term’ note was any loan that was due more than three years from the date of the note. Loans secured by real estate that were due within three years avoided paying any intangible tax. The statute has been amended to define a ‘long-term’ loan to be a note that has a maturity date that is more than 62 months from the date of the note. Now, loans secured by real estate due in five years will avoid paying the intangible tax.
This will not have much effect on residential mortgage loans because they normally do not come due for 15 or 30 years. This will mainly affect credit lines and commercial loans that have a maturity date of five years or less. (O.C.G.A. § 48-6-60, 48-6-66, and 48-6-68).
John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.