The state intangible tax on mortgages must be paid before a new mortgage can be recorded in the public records.
It is an amount paid to the local clerk of the court at the rate of 2 mills ($0.002) on the total amount of any NEW mortgages
A NEW mortgage is a mortgage that is created at the closing table as opposed to a mortgage that is assumed
Seller financing is always a new mortgage because it is created at the closing which will cause a vendor’s lien to be created
This is a one-off tax and is not paid every year
The buyer normally pays this tax at closing
On the closing statement it is normally shown as a debit to the buyer