Jun 14

Intangible Tax is not owed on Refinancing Debt with your existing Bank

Intangible tax can be a significant cost on your closing statement for a real estate transaction. You may be able to avoid this cost when you refinance your mortgage with your existing lender. Georgia law provides that you do not have to pay intangible tax again when you refinance a property with your existing lender if the intangible tax had already been paid on the initial loan. If you borrow a higher amount than what you initially borrowed you would owe intangible tax only on the difference between the higher amount and the initial amount.

As always your trusted legal resource, Justin Daniels

About Justin Daniels

Justin S. Daniels is the trusted legal quarterback providing corporate and commercial real estate advice to fast growing privately held entrepreneurial businesses. He practices law as a shareholder with the firm Wagner Johnston & Rosenthal, P.C. Justin's corporate practice consists of representing businesses and business owners in all aspects of their operations from structuring new ventures, advising on acquisitions and divestitures and reviewing and negotiating key vendor, franchise, employment and customer contracts. He has represented a variety of clients in the manufacturing, retail, professional services, consulting and technology industries.
View all posts by Justin Daniels →

  • Pingback: Atlanta Real Estate Updates | Woodstock Real Estate | Open Door Team

  • Pingback: Atlanta Real Estate Updates | Atlanta Real Estate Blog

  • shawnwiseman

    That is an excellent artiucle on commercial real etstae, it reminds me of something I learned over at http://www.thegreatestrealestategiveawayever.com which was a cool free resource. Look to learn more from you.

  • doncoia

    My home loan was originally with one company I forget who, but was sold to Wells Fargo shortly after I bought the house. Now I am refinancing with Wells Fargo and they did not add the intangible tax to the closing fees, but now several weeks after closing, there attorneys call me and say they will be sending me a bill for $600 dollars to cover the tax owed to record the deed. Is this correct?

  • doncoia

    The homeowner not only pays this tax at the time he or she borrows money to purchase the home, but also at each time the home mortgage is refinanced. The current exemption on loans refinancing current debt provided by Code Section 48-6-65 is woefully inadequate in that it exempts refinancing where the new lender is the same lender as the original lender and the original loan has never been assigned. The nature of the home lending business is such now that most home loans are sold and transferred by the originating lender so that few
    homeowners could avail themselves of that exemption. Thus, intangible taxes on notes which are secured by primary residences prove a hindrance to home ownership and it is in the best interests of the state and the economy of the state to exempt certain residential transactions from the taxes imposed by this chapter. Until HB 647 is passed, Intangible Tax will probably be imposed on any refinance that is not with the original lender.

  • http://google.com lopas

    thanks for the great information!

  • http://pulse.yahoo.com/_AYRSETY33WZNTELDZIYJLDNKEQ brian

    Could you please define orginal lender? I am currently refinancing from Amtrust, A division of New York community Bank, to another affiliate, New York community Bank mortgage LLC, should I pay intangible tax?