The intangibiles tax is a state tax on notes secured by real estate and must be paid before recording is allowed. Tax is on amount of new mortgage (if for more than 3 years). Lender must record the mortgage/security deed in order to foreclose later.

• Calculation is: $1.50 for each $500 of mortgage amount (or part of $500) to be recorded. Proper rounding is important.
• Where Recorded: At the court house in the county where property is located.
• When Recorded: As soon as possible after signing.
• Requirements: Must be signed, witnessed, and notarized.

Note: The tax must always end in either $.50 or an even $1.00. If tax is not paid lender cannot foreclose. It is the responsibility of the borrower, but may be paid by anyone on his behalf. If an existing loan is being assumed, that intangibles tax on that loan has already been paid and there is NO new intangible tax.

Examples:
Mortgage is $300,000
IT = $300,000 x $1.50/500 = $900.00

Mortgage is $275,400 convert the 400 to one 500 increment
IT = $275,500 x $1.50/500 = $826.50