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HB 62 - Intangible recording tax; long- term notes; amend provisions

Buck, III, Thomas B (135th)	Royal, A. Richard (164th)	Jamieson, Mary Jeanette (22nd)

Status Summary	HC:	W&M	SC:		FR:	01/13/99	LA:	01/14/99	H - Read 2nd Time

First Reader Summary

A BILL to amend Article 3 of Chapter 6 of Title 48 of the Official Code of Georgia Annotated, relating to the intangible recording tax, so as to change certain provisions regarding the filing of instruments securing long-term notes; and for other purposes.

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

HB 62                                              LC 18 9128 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 3 of Chapter 6 of Title 48 of the Official 
  1- 2  Code of Georgia Annotated, relating to the intangible 
  1- 3  recording tax, so as to change certain provisions regarding 
  1- 4  the filing of instruments securing long-term notes; to 
  1- 5  repeal conflicting laws; and for other purposes. 
 
  1- 6       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 7                           SECTION 1. 
 
  1- 8  Article 3 of Chapter 6 of Title 48 of the Official Code of 
  1- 9  Georgia Annotated, relating to the intangible recording tax, 
  1-10  is amended by striking Code Section 48-6-61, relating to the 
  1-11  filing of instruments securing long-term notes, which reads 
  1-12  as follows: 
 
  1-13    "48-6-61. 
 
  1-14    Every holder of a long-term note secured by real estate 
  1-15    shall, within 90 days from the date of the instrument 
  1-16    executed to secure the note, record the security 
  1-17    instrument in the county in which is located the real 
  1-18    estate conveyed or encumbered or upon which a lien is 
  1-19    created to secure the note and shall present, prior to 
  1-20    presenting the instrument to the clerk of superior court 
  1-21    for recording, the security instrument to the collecting 
  1-22    officer of the county in which the real estate is located. 
  1-23    The collecting officer shall determine from the face of 
  1-24    the security instrument the date of execution of the 
  1-25    instrument, the maturity date of the note, and the 
  1-26    principal amount of the note.  There is imposed on each 
  1-27    instrument an intangible recording tax at the rate of 
  1-28    $1.50 for each $500.00 or fraction thereof of the face 
  1-29    amount of the note secured by the recording of the 
  1-30    security instrument.  The collecting officer shall collect 
  1-31    the tax due on the security instrument from the holder of 
  1-32    the instrument; provided, however, the holder may pass on 
  1-33    the amount of such tax to the borrower or mortgagor but 
  1-34    the amount of such tax passed to the borrower or mortgagor 
 
 
 
                                 -1- 
 
 
 
  2- 1    shall not be considered or treated as part of any finance 
  2- 2    charge imposed by the holder in connection with the loan 
  2- 3    transaction.  If the security instrument reflects an 
  2- 4    amount greater than the principal amount of the note and, 
  2- 5    at the time the security instrument is presented for 
  2- 6    recording, the holder of the note also presents for 
  2- 7    recording with the security instrument said holder's sworn 
  2- 8    statement itemizing the principal amount of the note and 
  2- 9    the other charges included within the amount shown on the 
  2-10    face of the security instrument, the collecting officer 
  2-11    shall determine the principal amount of the note from the 
  2-12    sworn statement.  The maximum amount of any intangible 
  2-13    recording tax payable as provided in this Code section 
  2-14    with respect to any single note shall be $25,000.00.", 
 
  2-15  and inserting in its place a new Code Section 48-6-61 to 
  2-16  read as follows: 
 
  2-17    "48-6-61. 
 
  2-18    Every holder of a long-term note secured by real estate 
  2-19    shall, within 90 days from the date of the instrument 
  2-20    executed to secure the note, record the security 
  2-21    instrument in the county in which is located the real 
  2-22    estate conveyed or encumbered or upon which a lien is 
  2-23    created to secure the note and shall present, prior to 
  2-24    presenting the instrument to the clerk of superior court 
  2-25    for recording, the security instrument to the collecting 
  2-26    officer of the county in which the real estate is located. 
  2-27    The collecting officer shall determine from the face of 
  2-28    the security instrument the date of execution of the 
  2-29    instrument, the maturity date of the note, and the 
  2-30    principal amount of the note.  There is imposed on each 
  2-31    instrument an intangible recording tax at the rate of 
  2-32    $1.50 for each $500.00 or fraction thereof of the face 
  2-33    amount of the note secured by the recording of the 
  2-34    security instrument.  The collecting officer shall collect 
  2-35    the tax due on the security instrument from the holder of 
  2-36    the instrument; provided, however, the holder may pass on 
  2-37    the amount of such tax to the borrower or mortgagor but 
  2-38    the amount of such tax passed to the borrower or mortgagor 
  2-39    shall not be considered or treated as part of any finance 
  2-40    charge imposed by the holder in connection with the loan 
  2-41    transaction.  If the security instrument reflects an 
  2-42    amount greater than the principal amount of the note and, 
  2-43    at the time the security instrument is presented for 
  2-44    recording, the holder of the note also presents for 
 
 
 
                                 -2- 
 
 
 
  3- 1    recording with the security instrument said holder's sworn 
  3- 2    statement itemizing the principal amount of the note and 
  3- 3    the other charges included within the amount shown on the 
  3- 4    face of the security instrument, the collecting officer 
  3- 5    shall determine the principal amount of the note from the 
  3- 6    sworn statement.  The maximum amount of any intangible 
  3- 7    recording tax payable as provided in this Code section 
  3- 8    with respect to any single note shall be $25,000.00." 
 
  3- 9                           SECTION 2. 
 
  3-10  All laws and parts of laws in conflict with this Act are 
  3-11  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -3-