Rule 560-11-8-.07 - Multi-State Property(1) Resident holder: If the holder of an instrument conveying property located both within and without the State of Georgia to secure a long-term note, is a resident of Georgia, the amount of the tax required is that amount that would be due were the property located wholly within the State of Georgia. The maximum amount of Georgia intangible recording tax payable with respect to the instrument is $25,000.(2) Nonresident holder: A nonresident, if a business entity, for the purposes of this regulation is defined as any business entity that is incorporated or organized under law other than the law of Georgia and maintains its principal place of business in a state other than Georgia. (a) If the holder of an instrument conveying property located both within and without the State of Georgia is a nonresident of Georgia, the amount of tax due would be $1.50 per $500.00 or fraction thereof of the principal of the note, times (x) the ratio of the value of real property located in Georgia to the value of all real property, in-state and out-of-state, securing the note.(b) All values must be certified under oath by the holder presenting the instrument for recording. The application of the $25,000 cap is made after the above referenced computation is completed. An example follows: $100,000,000 | = | Total Loan Amount |
10% | = | % of FMV of Real Property located within Ga. |
90% | = | % of FMV of Real Property located outside Ga. |
$300,000 | = | Tax on Loan Amount ($100,000,000 x .003) |
30,000 | = | Tax on 10% of Loan Amount (Ga. portion) |
25,000 | = | Tax (after application of the cap) |
(3) Resident and nonresident holders: Where a single security instrument secures long-term notes held by both residents and nonresidents and the long-term notes held by the residents and the nonresidents are clearly identifiable from the security instrument, the nonresident holders will be allowed to apportion their tax paid based on the apportionment formula described in subsection (2)(b). (a) Resident holders in the same transaction, however, will be required to pay the intangible recording tax as if the property were located wholly within the State of Georgia on that portion of indebtedness represented by the long-term notes they hold. The maximum amount of Georgia intangible recording tax payable with respect to the indebtedness is $25,000.(b) If the notes held by residents and nonresidents cannot be distinguished from the face of the security instrument, no holder, resident or nonresident, win be allowed to apportion their tax paid based on the apportionment formula described in subsection (b).Ga. Comp. R. & Regs. R. 560-11-8-.07
O.C.G.A. Secs. 48-6-61, 48-6-69.
Original Rule entitled "Multi-state Property" adopted. F. Jun. 17, 1996; eff. July 7, 1996.