Georgia recently passed House Bill 586 (H.B. 586) to amend definitions under Georgia Annotated Code, Title 48, Chapter 6, Article 3, relating to intangible recording tax. In Georgia, an intangible recording tax is an excise tax collected on “long-term notes secured by real estate.” The tax is collected by the Clerk of the Superior Court at the time the security instrument is recorded. The holder of the note is responsible for the obligation, but lenders may pass the cost of the tax on to the borrower as part of the closing costs of a loan.
H.B. 586 changed the definition of a “long-term note secured by real estate” in Ga. Code Ann. Section 48-6-60 (3) from “a note with the principal due in more than three years” to “a note with the principal due in more than 62 months” from the origination date. The legislation also repealed Ga. Code Ann. Section 46-6-60 (4), which provides the definition of a “short-term note secured by real estate” as a note which would be a long-term note except that the principal of the note falls due within three years from the origination date.
GA Code Ann. Section 48-6-66, which requires the note to include the amount being secured and the maturity date, is amended by H.B. 586. Now, notes with a maturity date of 62 months or less from the origination date, instead of three years, may satisfy the requirements of the section by including a statement that the note falls within that time frame, in lieu of providing the maturity date.
Article 3 is further amended by H.B. 586 by revising Ga. Code Ann. Section 48-6-68, which provides when a seller who retains a title interest in a property must record and deliver a bond for title to the purchaser. This section now has a change based on a maturity date of more than 62 months, instead of three years.
Beginning on the effective date of H.B. 586, July 1, 2025, DocMagic will print “NA” for the intangible tax amount on Georgia notes with a maturity date of 62 months or less from the date of origination. Under the new definition, notes with a maturity date of 62 months or less are no longer considered “long-term notes secured by real estate” and are not subject to an intangible tax.