HB586: HB586 Revenue and taxation; intangible recording tax; revise notes

Georgia charges an intangible recording tax on notes secured by real estate, such as mortgages and deeds to secure debt, when those notes are considered long-term. Current law (O.C.G.A. § 48-6-60) defines a long-term note as one where any part of the principal is due more than three years after the note or the securing instrument is dated. House Bill 586 changes that measuring point from three years to 62 months. The bill also updates two related sections. O.C.G.A. § 48-6-66, which requires real estate instruments to state the note's amount and due date, is updated so that the shortcut allowing lenders to simply state a note falls due within the time limit (instead of listing an exact date) now uses the 62 month standard. O.C.G.A. § 48-6-68, covering bonds for title when a seller keeps title as security, is likewise updated so sellers must record and pay tax on the instrument when the purchase price is due more than 62 months out. The bill also repeals a related definitional paragraph and repeals any conflicting laws.

• Changes the definition of a 'long-term note secured by real estate' in O.C.G.A. § 48-6-60 from a note due more than three years out to one due more than 62 months out.
• Repeals paragraph (4) of the definitions section in O.C.G.A. § 48-6-60, removing that separate definition from the law.
• Updates O.C.G.A. § 48-6-66 so the shortcut for stating a note's due date on a security instrument uses the new 62 month threshold instead of three years.
• Updates O.C.G.A. § 48-6-68 so sellers using a bond for title must record the instrument and pay the intangible tax when repayment is due more than 62 months out.
• Repeals any other Georgia laws that conflict with these changes.

The bill affects lenders, real estate sellers who use bonds for title, home buyers and property purchasers, title and closing attorneys, and county clerks who record real estate instruments and collect the related intangible recording tax.

Whether a note counts as 'long-term' determines how the intangible recording tax is calculated when a mortgage or similar instrument is recorded. Shifting the cutoff from three years to 62 months could change the tax treatment for notes with maturities close to that line, affecting closing costs and paperwork requirements for real estate transactions.

• Section 1 revises O.C.G.A. § 48-6-60(3) to change the long-term note threshold from three years to 62 months and repeals paragraph (4) of that Code section.
• Section 2 revises O.C.G.A. § 48-6-66 to apply the 62 month threshold to the rule letting instruments state a note falls due within that period instead of listing an exact due date.
• Section 3 revises O.C.G.A. § 48-6-68 to apply the 62 month threshold to when a seller using a bond for title must record the instrument and pay the tax.
• Section 4 repeals all laws and parts of laws that conflict with the Act.

1. 2025-05-09Effective Date 2025-07-01
2. 2025-05-09Act 77
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-09House Sent to Governor (House)
5. 2025-04-04House Agreed Senate Amend or Sub (House)
6. 2025-04-02Senate Passed/Adopted By Substitute (Senate)
7. 2025-04-02Senate Third Read (Senate)
8. 2025-04-02Senate Engrossed (Senate)

• Bruce Williamson (R, HD-112)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Noel Williams (R, HD-148)
• James Hatchett (R, HD-155)
• Chuck Efstration (R, HD-104)
• James Burchett (R, HD-176)
• Mike Hodges (R, SD-003)

1. PassedHouse voteMarch 6, 2025

   170 yea, 1 nay (3 not voting, 6 absent)

   Passage: House Vote #256

2. PassedSenate voteApril 2, 2025

   31 yea, 24 nay (0 not voting, 1 absent)

   Motion To Engross: Sb 214, Hb 66, Hb 79, Hb 129, Hb 134, Hb 141, Hb 370, Hb 397, Hb 445, Hb 463, Hb 532, Hb 586, Hb 652: Senate Vote #383

3. PassedSenate voteApril 2, 2025

   55 yea, 1 nay

   Passage By Substitute: Senate Vote #404

4. PassedHouse voteApril 4, 2025

   161 yea, 0 nay (11 not voting, 8 absent)

   Agree To Senate Substitute: House Vote #405

• intangible recording tax
• real estate law
• mortgages
• property law
• state taxation