HB 586: 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 the note is considered 'long-term.' Under current law, a note counts as long-term, and thus is taxed differently, if any part of its principal is due more than three years after the note's date. This bill changes that threshold to 62 months (a little over five years) instead of three years. The bill makes matching changes in three places in Georgia law: the definition of 'long-term note secured by real estate' (O.C.G.A. § 48-6-60), the rule requiring instruments to state a note's amount and due date (O.C.G.A. § 48-6-66), and the rule on bonds for title when a seller retains title as security (O.C.G.A. § 48-6-68). In each spot, the old three-year cutoff is replaced with 62 months. The bill repeals conflicting laws and does not list a separate effective date section in the text provided.

• Changes the cutoff for a 'long-term note secured by real estate' from three years to 62 months in the tax definitions (O.C.G.A. § 48-6-60).
• Removes paragraph (4) of the definitions section in O.C.G.A. § 48-6-60 entirely.
• Updates the rule on stating a note's amount and due date on real estate instruments to use the new 62-month threshold (O.C.G.A. § 48-6-66).
• Updates the bond for title rule for real estate sellers who retain title as security to use the new 62-month threshold (O.C.G.A. § 48-6-68).
• Repeals any existing laws that conflict with these changes.

Homebuyers and sellers, mortgage lenders, title companies, real estate attorneys, and county clerks who record real estate instruments and calculate Georgia's intangible recording tax on long-term notes secured by real estate.

Because the intangible recording tax depends on whether a note is classified as long-term, moving the cutoff from three years to 62 months changes which loans fall into that category, potentially affecting how much tax is owed when certain real estate loans and bonds for title are recorded in Georgia.

• Section 1 revises O.C.G.A. § 48-6-60's definition of 'long-term note secured by real estate,' changing the trigger point from three years to 62 months and repealing paragraph (4) of that definitions section.
• Section 2 revises O.C.G.A. § 48-6-66 so that notes falling due within 62 months, rather than three years, may use a simplified statement instead of listing an exact due date.
• Section 3 revises O.C.G.A. § 48-6-68 so that a seller must record a bond for title instrument before delivery if the purchase price falls due more than 62 months from the instrument's date, replacing the old three-year standard.
• Section 4 repeals all laws and parts of laws that conflict with the bill.

1. 2025-07-01Effective Date
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, Jr. (R, HD-148)
• Matt Hatchett (R, HD-155)
• Chuck Efstration (R, HD-104)
• James Burchett (R, HD-176)
• Mike Hodges (R, SD-3)

1. PassedHouse voteMarch 6, 2025

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

   PASSAGE: House Vote #256

2. PassedSenate voteApril 2, 2025

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

   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 excused)

   Agree to Senate Substitute: House Vote #405

• property taxes
• real estate law
• intangible recording tax
• mortgages
• tax code changes