B-182082, JAN 22, 1975

B-182082, JAN 22, 1975

EMPLOYEE WHO INCIDENT TO TRANSFER FROM ROME, GEORGIA, PAID $91.50 GEORGIA INTANGIBLE TAX INCIDENT TO SALE OF RESIDENCE IN ROME, IS ENTITLED TO REIMBURSEMENT FOR THIS AMOUNT ONLY IF CUSTOMARILY PAID BY SELLER OF RESIDENCE AT OLD OFFICIAL STATION. RECORD DID NOT ESTABLISH THAT SELLER CUSTOMARILY PAYS GEORGIA INTANGIBLE TAX IN ROME, GEORGIA AREA.

CLAIM FOR REIMBURSEMENT FOR GEORGIA INTANGIBLE TAX:

THIS MATTER INVOLVES AN INTERNAL REVENUE SERVICE (IRS) REQUEST FOR ADVANCE DECISION AS TO THE PROPRIETY OF PAYMENT OF A SUPPLEMENTAL CLAIM BY MR. WILLIAM A. CROMER, AN EMPLOYEE OF IRS, FOR $91.50 REPRESENTING THE GEORGIA STATE INTANGIBLE TAX PAID BY HIM IN CONNECTION WITH THE SALE OF A RESIDENCE INCIDENT TO HIS TRANSFER.

THE RECORD INDICATES THAT MR. CROMER WAS TRANSFERRED FROM ROME, GEORGIA, TO ATLANTA, GEORGIA, EFFECTIVE JANUARY 4, 1974. INCIDENT TO HIS TRANSFER, HE SOLD HIS RESIDENCE IN ROME, GEORGIA, AND IN CONNECTION WITH THIS SALE HE WAS REQUIRED TO PAY THE GEORGIA STATE INTANGIBLE TAX. SECTION 164 OF TITLE 92, CODE OF GEORGIA, PROVIDES THAT EVERY HOLDER OF LONG-TERM NOTES SECURED BY REAL ESTATE SHALL, PRIOR TO PRESENTING SUCH INSTRUMENT FOR RECORDING, PRESENT IT TO THE TAX COLLECTOR WHO SHALL COLLECT FROM THE HOLDER OF SUCH LONG-TERM NOTE A TAX MEASURED BY THE AMOUNT OF THE DEBT. THUS, THE GEORGIA INTANGIBLE TAX APPEARS TO BE IN THE FORM OF A MORTGAGE TAX LEVIED ONLY ONCE AND ONLY IN CONNECTION WITH THE PURCHASE OF A RESIDENCE. AS SUCH IT MAY BE REGARDED AS A RELOCATION EXPENSE FOR WHICH REIMBURSEMENT IS ALLOWABLE.

HOWEVER, SECTION 2-6.2D (1973) OF THE FEDERAL TRAVEL REGULATIONS (FTR) PROVIDES FOR REIMBURSEMENT FOR MORTGAGE AND TRANSFER TAXES, STATE REVENUE STAMPS, AND SIMILAR FEES AND CHARGES WITH RESPECT TO THE SALE OF A RESIDENCE IF THEY ARE CUSTOMARILY PAID BY THE SELLER OF A RESIDENCE AT THE OLD OFFICIAL STATION. IN OUR DECISION OF AUGUST 27, 1973 (B-178873), WHICH INVOLVED A CLAIM FOR REIMBURSEMENT OF $87 REPRESENTING THE GEORGIA INTANGIBLE TAX PAID BY AN EMPLOYEE IN CONNECTION WITH THE PURCHASE OF A HOME IN DECATUR, GEORGIA, INCIDENT TO A TRANSFER TO THAT STATE, WE WERE ADVISED BY THE ATLANTA AREA OFFICE OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THAT IN THE ATLANTA AREA THE GEORGIA INTANGIBLE TAX IS NORMALLY PAID BY THE SELLER OF A RESIDENCE, AT LEAST IN THOSE CASES INVOLVING MORTGAGES GUARANTEED BY THE FEDERAL HOUSING ADMINISTRATION (FHA). HOWEVER, IN MATTER OF RECONSIDERATION OF DECISION DENYING REIMBURSEMENT FOR GEORGIA INTANGIBLE TAX, B-178873, APRIL 22, 1974, WE HELD THAT SINCE THE ADDITIONAL EVIDENCE INDICATED THAT IT IS CUSTOMARY FOR THE PURCHASER OF A RESIDENCE IN THE ATLANTA AREA TO PAY THE GEORGIA INTANGIBLE TAX, AS A CLOSING COST, WHEN FINANCING IS HANDLED THROUGH CONVENTIONAL OR VETERANS ADMINISTRATION (VA) LOAN PROCEDURES, THE EMPLOYEE COULD BE REIMBURSED FOR THE TAX.

WHILE THE ABOVE CASES ILLUSTRATE THAT THE QUESTION OF WHO CUSTOMARILY PAYS THE GEORGIA INTANGIBLE TAX MAY DEPEND ON THE TYPE OF FINANCING INVOLVED, IT SHOULD BE POINTED OUT THAT IN OTHER AREAS OF THE STATE THE QUESTION OF WHO PAYS THE TAX MAY DEPEND ON OTHER FACTORS. IN THE PRESENT CASE NOT ONLY DO WE NOT KNOW WHAT TYPE OF FINANCING WAS INVOLVED, BUT WE DO NOT KNOW THE CUSTOMARY PRACTICE IN THE ROME, GEORGIA AREA WHERE THE SALE TOOK PLACE. IF IT IS DETERMINED BY YOUR AGENCY FROM ADDITIONAL EVIDENCE THAT IT IS A CUSTOMARY PRACTICE IN THE ROME AREA FOR THE SELLER TO PAY THE INTANGIBLE TAX AS A CLOSING COST IN SALES OF THE TYPE (FHA, VA OR CONVENTIONAL) INVOLVED IN THE PRESENT CASE, MR. CROMER MAY BE REIMBURSED FOR THE TAX; OTHERWISE THE CLAIM IS FOR DISALLOWANCE.

IN VIEW OF THE ABOVE, PAYMENT MAY NOT BE MADE ON THE PRESENT RECORD.