Georgia House of Representatives - 1995/1996 Sessions

HB 5 - Intangible personal property tax; rate provisions; cert limitation

Page Numbers - 1/ 2/ 3/ 4

Code Sections - 48-6-23/ 48-6-61

1. Buck  135th            2. Royal  164th            3. Skipper  137th
4. Johnson  97th          5. Culbreth  132nd         6. Trense  44th


House Comm: W&M        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              1/9/95   Read 1st Time                                                                
              1/10/95  Read 2nd Time                                                                
              ----------------------------------------                                              
Rules Suspended to Introduce                                                                        
                                                                                                    
Code Sections amended: 48-6-23, 48-6-61                                                             


HB 5                                               LC 18 6396






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Chapter 6 of Title 48 of the Official Code of
  1- 2  Georgia Annotated, relating to taxation of intangibles, so
  1- 3  as to change certain provisions regarding the rate of
  1- 4  intangible personal property tax; to remove the limitation
  1- 5  on the maximum amount of intangible recording tax payable
  1- 6  with respect to any single note; to provide an effective
  1- 7  date; to provide for applicability; to repeal conflicting
  1- 8  laws; and for other purposes.

  1- 9       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-10  Chapter 6 of Title 48 of the Official Code of Georgia
  1-11  Annotated, relating to taxation of intangibles, is amended
  1-12  by striking Code Section 48-6-23, relating to the rate of
  1-13  tax levied on intangible personal property, and inserting in
  1-14  its place a new Code Section 48-6-23 to read as follows:

  1-15    "48-6-23. (Index)

  1-16    (a) A property tax is levied annually as of January 1 of
48-6-61N    ear at the following rates:

  1-18      (1) Ten cents upon each $1,000.00 of the fair market
  1-19      value of all All personal property classified for
  1-20      taxation as intangible personal property in Code Section
  1-21      48-6-21, including all restricted foreign intangibles.
  1-22      The tax is not levied by this paragraph on intangible
  1-23      personal property classified as collateral security
  1-24      loans, long-term notes secured by real estate, or
  1-25      stocks, bonds, and debentures; except for restricted
  1-26      foreign intangibles which are taxed in this paragraph
  1-27      and not otherwise;:

  1-28          If Fair Market Value Is:           The Tax Is:

  1-29      Not over $1 million ............ 10› upon each $1,000.00
                                     of fair market value




                                 -1- (Index)

                                                  LC 18 6396

  2- 1           Over $1 million but not over
  2- 2           $2 million ................ $100.00 plus 5› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $1 million

  2- 3      Over $2 million ................ $150.00 plus 2.5› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $2 million

  2- 4      (2) Twenty-five cents upon each $1,000.00 of the fair
  2- 5      market value of all All collateral security loans;:

  2- 6          If Fair Market Value Is:           The Tax Is:

  2- 7      Not over $1 million ............ 25› upon each $1,000.00
                                     of fair market value
  2- 8           Over $1 million but not over
  2- 9           $2 million ................ $250.00 plus 12.5› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $1 million

  2-10      Over $2 million ................ $375.00 plus 6.25› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $2 million

  2-11      (3) One dollar upon each $1,000.00 of the fair market
  2-12      value of all All stocks in all corporations except those
  2-13      specifically exempted by law; and:

  2-14          If Fair Market Value Is:           The Tax Is:

  2-15      Not over $1 million ............ $1.00 upon each
                                     $1,000.00 of fair
                                     market value
  2-16           Over $1 million but not over
  2-17           $2 million ................ $1,000.00 plus 50› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $1 million

  2-18      Over $2 million ................ $1,500.00 plus 25› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $2 million

  2-19      (4) One dollar upon each $1,000.00 of the fair market
  2-20      value of all All bonds and debentures of all


                                 -2- (Index)

                                                  LC 18 6396

  3- 1      corporations.  The tax rate upon notes of corporations,
  3- 2      other than long-term notes secured by real estate, shall
  3- 3      be the rate specified in paragraph (1) of subsection (a)
  3- 4      of this Code section, regardless of the maturity date of
  3- 5      any such note or notes.:

  3- 6          If Fair Market Value Is:           The Tax Is:

  3- 7      Not over $1 million ............ $1.00 upon each
                                     $1,000.00 of fair
                                     market value
  3- 8           Over $1 million but not over
  3- 9           $2 million ................ $1,000.00 plus 50› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $1 million

  3-10      Over $2 million                  $1,500.00 plus 25› upon
                                     each $1,000.00 of fair
                                     market value over
                                     $2 million

  3-11    (b) Long-term notes secured by real estate, as defined in
  3-12    Article 3 of this chapter, shall be recorded and taxed as
  3-13    provided in Article 3 of this chapter."

                         SECTION 2.

  3-14  Said chapter is further amended by striking Code Section
  3-15  48-6-61, relating to filing instruments securing long-term
  3-16  notes, and inserting in its place a new Code Section 48-6-61
  3-17  to read as follows:

  3-18    "48-6-61. (Index)

  3-19    Every holder of a long-term note secured by real estate
  3-20    shall, within 90 days from the date of the instrument
  3-21    executed to secure the note, record the security
  3-22    instrument in the county in which is located the real
  3-23    estate conveyed or encumbered or upon which a lien is
  3-24    created to secure the note and shall present, prior to
  3-25    presenting the instrument to the clerk of superior court
  3-26    for recording, the security instrument to the collecting
  3-27    officer of the county in which the real estate is located.
  3-28    The collecting officer shall determine from the face of
  3-29    the security instrument the date of execution of the
  3-30    instrument, the maturity date of the note, and the
  3-31    principal amount of the note.  There is imposed on each
  3-32    instrument an intangible recording tax at the rate of
  3-33    $1.50 for each $500.00 or fraction thereof of the face


                                 -3- (Index)

                                                  LC 18 6396

  4- 1    amount of the note secured by the recording of the
  4- 2    security instrument.  The collecting officer shall collect
  4- 3    the tax due on the security instrument from the holder of
  4- 4    the instrument.  If the security instrument reflects an
  4- 5    amount greater than the principal amount of the note and,
  4- 6    at the time the security instrument is presented for
  4- 7    recording, the holder of the note also presents for
  4- 8    recording with the security instrument said holder's sworn
  4- 9    statement itemizing the principal amount of the note and
  4-10    the other charges included within the amount shown on the
  4-11    face of the security instrument, the collecting officer
  4-12    shall determine the principal amount of the note from the
  4-13    sworn statement.  The maximum amount of any intangible
  4-14    recording tax payable as provided in this Code section
  4-15    with respect to any single note shall be $25,000.00."

                         SECTION 3.

  4-16  This Act shall become effective on January 1, 1996, and
  4-17  shall be applicable to all taxable years beginning on or
  4-18  after that date.

                         SECTION 4.

  4-19  All laws and parts of laws in conflict with this Act are
  4-20  repealed.
























                                 -4- (Index)