--- title: HB 586. Revenue and taxation; intangible recording tax; revise notes collection: bills id: 2025-2026/hb586 cite_as: HB 586, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb586 md_url: https://georgiacommons.org/bills/2025-2026/hb586.md text_url: https://georgiacommons.org/bills/2025-2026/hb586/text source_url: https://www.legis.ga.gov/legislation/70695 date: 2025-05-09 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb585.md next: https://georgiacommons.org/bills/2025-2026/hb587.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1490 omitted_url: https://georgiacommons.org/bills/2025-2026/hb586.md?full=1 bill_number: HB 586 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-05-09 last_action: Effective Date 2025-07-01 sponsors: - Bruce Williamson - Shaw Blackmon - Noel Williams - James Hatchett - Chuck Efstration - James Burchett - Mike Hodges text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/HB586/2025 upstream_id: 1979973 summaries_model: claude-sonnet-5 topic_tags: - intangible recording tax - real estate law - mortgages - property law - state taxation --- # HB 586. Revenue and taxation; intangible recording tax; revise notes ## Text 25 HB 586/AP House Bill 586 (AS PASSED HOUSE AND SENATE) By: Representatives Williamson of the 112th, Blackmon of the 146th, Williams of the 148th, Hatchett of the 155th, Efstration of the 104th, and others A BILL TO BE ENTITLED AN ACT To amend Article 3 of Chapter 6 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to intangible recording tax, so as to revise the notes for which such tax is imposed;2 to provide for procedures; to revise definitions; to provide fo r related matters; to repeal3 conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Article 3 of Chapter 6 of Title 48 of the Official Code of Geor gia Annotated, relating to7 intangible recording tax, is amended in Code Section 48-6-60, r elating to definitions, by8 revising paragraph (3) and by repealing paragraph (4) as follows:9 "(3) 'Long-term note secured by real estate' means any note representing credits secured10 by real estate by means of mortgages, deeds to secure debt, pur chase money deeds to11 secure debt, bonds for title, or any other form of security instrument, when any part of the12 principal of the note falls due more than three years 62 months from the date of the note13 or from the date of any instrument executed to secure the note and conveying or creating14 a lien or encumbrance on real estate for such purpose."15 H. B. 586 - 1 - 25 HB 586/AP SECTION 2.16 Said article is further amended by revising Code Section 48-6-66, relating to showing correct17 amount and due date on instruments conveying, encumbering, or c reating a lien upon real18 estate, as follows:19 "48-6-66.20 Every instrument conveying, encumbering, or creating a lien upon real estate shall set forth21 in words and figures the correct amount of the note secured by the instrument and the date22 upon which the note falls due. When the note falls due within three years 62 months from23 the date of the note or from the date of any instrument execute d to secure the note, a24 statement of that fact in lieu of specifying the date upon which the note falls due may be25 made in the security instrument and shall constitute sufficient compliance with this Code26 section. The inclusion in the instrument of a provision that the instrument secures all other27 indebtedness then existing or thereafter incurred shall not req uire the setting forth in the28 instrument of existing indebtedness for loans not made on the security of the instrument."29 SECTION 3.30 Said article is further amended by revising Code Section 48-6-68, relating to bond for title31 in absence of security deed and recording and tax, as follows:32 "48-6-68.33 Any seller of real estate who retains title to the real estate as security for the purchase price34 and who does not convey title to the purchaser or take back a d eed to secure debt shall35 execute and deliver to the purchaser a bond for title which sha ll correctly set forth the36 unpaid portion of the purchase price and the maturity of the indebtedness. If any part of37 the purchase price falls due more than three years 62 months from the date of the38 instrument, the seller shall have the instrument recorded befor e delivery of the bond for39 title in the county where the land is located and shall pay the tax required by this article for40 the recording of the instrument."41 H. B. 586 - 2 - 25 HB 586/AP SECTION 4.42 All laws and parts of laws in conflict with this Act are repealed.43 H. B. 586 - 3 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. House Bill 586 changes how Georgia's intangible recording tax law defines a long-term real estate note, moving the cutoff from three years to 62 months, which affects how the tax is calculated on mortgages and similar loans. ### Plain-language summary 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. ### What it does - 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. ### Who it affects 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. ### Why it matters 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. ### Key provisions - 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. ## Status - Status: Passed (2025-05-09) - Last action: Effective Date 2025-07-01 (2025-05-09) - Sponsors: Bruce Williamson, Shaw Blackmon, Noel Williams, James Hatchett, Chuck Efstration, James Burchett, Mike Hodges - Official page: https://www.legis.ga.gov/legislation/70695 > The history, votes, and amendments (1,490 characters) are at https://georgiacommons.org/bills/2025-2026/hb586.md?full=1