How is the Georgia intangible tax computed?

The correct answer is based on the structure of the Georgia intangible tax, which is determined by the amount of debt incurred, specifically calculated as $1.50 per each $500 of the amount borrowed or any fraction thereof. This tax applies to loans secured by real estate and is designed to tax the value of intangibles associated with the mortgage, rather than just a flat fee or a percentage of the sales price.

This method of calculation ensures that the tax reflects the actual financial obligation taken on by the borrower, rather than a uniform cost or a value based on the property’s market price. As a result, as the loan amount increases, so does the intangible tax, thus linking the tax directly to the borrower's financing needs. Understanding this structure is crucial for both real estate professionals and clients engaged in property transactions in Georgia.