Georgia Application for Certificate of Subordination of State Tax Execution

Application for Certificate of Subordination of State Tax Execution
Application for Certificate of Subordination of State Tax Execution
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Georgia Department of Revenue

Application for Certificate of Subordination of
State Tax Execution

Form CD-14134
(November 2014)

Complete the entire application. Enter NA (not applicable), when appropriate. Attachments and exhibits should be included
as necessary. Additional information may be requested of you or a third party to clarify the details of the transaction(s).
You must attach written approval from your lender/finance company accepting subordination of a state tax execution.
1. Taxpayer Information (Individual or Business names on the state tax execution):
Name (Individual First, Middle Initial, Last) (Business) as it appears on the tax execution)

Primary Social Security Number

Name Continuation (Individual First, Middle Initial, Last) or (Business d/b/a)

Secondary Social Security Number

Address (Number Street, P.O. Box)

Employer Identification Number

City

2. Applicant Information:

State

ZIP Code

Telephone Number

Fax Number

Check if also the Taxpayer (If not the taxpayer, attach copy of lien. See Line 10.)

Name (First, Middle Initial, Last)

Relationship to taxpayer

Address (Number, Street, P.O. Box)
City

3. Property Owner

State

ZIP Code

Telephone Number

Fax Number

Check if also the Applicant

Name (First, Middle Initial, Last)

Relationship to taxpayer

4. Attorney/Representative Information
Name (First, Middle Initial, Last)

Interested represented (e.g. taxpayer, lender, etc.)

Address (Number, Street, P.O. Box)

Power of Attorney (RD-1061) or Disclosure Authorization
Form (RD-1062) attached?
Yes
No

City

State

ZIP Code

Telephone Number

Fax Number

Contact Name

Contact Phone Number

5. Lender/Finance Company
Company Name

Type of transaction (For example, loan consolidation, refinance, etc)

6. Monetary Information
Amount of existing loan (if refinancing):
Amount of new loan:
Amount to be paid to the State of Georgia:
Form CD-14134 (Rev. 11-2014)

www.dor.ga.gov

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7. Basis for Subordination: Check the box below that best addresses what you would like the State of Georgia to consider in your
application for subordination.

Choice 1 - the State of Georgia will receive an amount equal to the lien or interest to which the certificate of
subordination is issued (provide amount in Section 6 above)
Choice 2 - the issuance of the certificate of subordination will increase the government's interest and make collection
of the tax liability easier. (Complete and attach a signed and dated statement describing how the amount the State of
Georgia may ultimately realize will increase and how collection will be facilitated by the subordination.)

Statement

Attached

N/A

8a. Description of Property (for example, 3 bedroom house; 2002 Cessna twin engine airplane, serial number AT919000, etc.)

8b. Address of real property (if this is personal property, list the address where the property is located):
Address (Number, Street, P.O. Box)
City

State

ZIP Code

FOR REAL ESTATE: a legible copy of the deed or title showing the legal description is required.
9.

Attached

N/A

Appraisal and Valuations
APPRAISAL (Professional appraisal completed by a disinterested
third party not mandatory for subordination)

Attached

OR ONE OF THE FOLLOWING VALUATIONS:
County valuation of property (real property)

Attached

Informal valuation of property by disinterested third party

Attached

Proposed selling price (for property being sold at auction)

Attached

Other: ____________________________________________

Attached

10.

Attached
Copy of state tax executions (Complete if applicant and taxpayer differ)
OR list the lien number(s) found near the top right corner on the lien document(s) (if known)

Not attached

11.

Copy of the proposed loan agreement (if available)

Not attached

Attached

AND
Describe how subordination is in the best interests of the State of Georgia:

Form CD-14134 (Rev. 11-2014)

www.dor.ga.gov 

Page 3 of 3

Attached
Not attached
12. Copy of a current title report (required for subordination)
OR
List encumbrances with seniority to the state tax lien. Include name and address of holder; description of
encumbrance, e.g., mortgage, federal tax lien, etc.; date of agreement; original loan amount and interest rate;
amount due at time of application; and family relationship, if applicable. Attach additional sheets as needed.

 

 

13. Copy of proposed closing statement (aka HUD-1)

Attached

Not attached

OR
Itemize all proposed costs, commissions, and expenses of any transfer or sale associated with property (Attach
additional sheets as needed):

14. Additional information that may have a bearing on this request, such
pending litigation, explanations of unusual situations, etc., is attached
for consideration.

Yes

No

15. Declaration

 

Under penalties of perjury, I declare that I have examined this application, including any accompanying schedules, exhibits,
affidavits, and statements and to the best of my knowledge and belief it is true, correct and complete.

 

____________________________________
 

Signature/Title

___________________
Date

 
 

____________________________________

___________________
Date

Form CD-14134 (Rev. 11-2014)

Signature/Title

www.dor.ga.gov

Georgia Department of Revenue
Instructions on how to apply for a

Certificate of Subordination of State Tax Execution
A Certificate of Subordination under the Georgia Public
Revenue Code (O.C.G.A. 48-2-58) allows a named creditor to
move their junior creditor position ahead of the State of
Georgia’s position for the property named in the certificate.
1. Complete Form CD-14134, Application for Certificate of
Subordination of State Tax Execution attached with this
publication.
2. Mail the completed Form CD-14134 and the appropriate
attachments to:
Georgia Department of Revenue
Attn: Accounts Receivable Collections - Liens
1800 Century Blvd. NE
Suite 9100
Atlanta, GA 30345
If you have any questions or want to know how much you owe
in order to pay the lien(s) in full, call 1-404-417-6543, visit the
nearest Department of Revenue (DOR) regional office, or
contact the revenue officer assigned to your case.
Important!
Please submit your application at least 30 days before the
transaction date that the certificate of subordination is
needed. Doing so will allow sufficient time for review,
determination, notification and the furnishing of any applicable
documents by the transaction date.
Information Required on the Application
Section 1 - Taxpayer Information
1. Enter the name and address of the individual(s) or
business as it appears on the state tax execution. A second
name line is provided if needed.
2. Enter, if known, the last 4 digits of the social security
number (SSN) or full employer identification number as it
appears on the state tax execution.
3. Enter, if known and if applicable, the last 4 digits of any
spousal SSN (secondary SSN) associated with the tax debt
listed on the state tax execution.
4. Provide a daytime phone number and a fax number.

Section 2 - Applicant Information
1. Check the box on the first line of Section 2 if you are both
the taxpayer and the applicant. If you are not the taxpayer,
attach a copy of the lien.

2. If you have checked the box indicating that you are the
taxpayer and your information is the same as listed on the
lien, enter “same as taxpayer” on the name line.
3. If you are not the taxpayer or you are the taxpayer but your
information is no longer the same as the information on the
state tax execution, enter your name (include any name
changes), current address, daytime phone number and fax
number.
4. If you are not the taxpayer, enter in the box next to
“Name” your relationship to the taxpayer (e.g. parent, uncle,
sister, no relation, etc).
Section 3 – Property Owner
1. Check the box on the first line of Section 3 if you are both
the property owner and the applicant.
2. Enter the name of the property owner. However, enter
“same as applicant” if you have checked the box indicating
you are both the applicant and the property owner.
3. Enter the property owner’s relationship to the taxpayer
(e.g., taxpayer, parent, no relation, etc.).
Section 4 - Attorney/Representative Information
This section is used to list the taxpayer’s representative or a
representative of a party other than the taxpayer, such as the
lender, needing to receive information from the DOR.
However, you do not need a representative to request a
release of the state tax execution.
1. Check the box on the first line of Section 4 if you are
attaching a Form RD-1062 (Disclosure Authorization Form) or
Form RD-1061 (Power of Attorney) with your application. If
you are attaching one of these forms, please make sure it is
completely filled out, signed, and dated. You must provide
one of these forms if the representative represents an interest
other than the taxpayer.
2. Enter the name, address, phone number, and fax number
of your representative in this action. The DOR will work with
you and your representative to process your application.
Enter “NA” on the name line if you are not using a
representative.
3. Enter whose interest the representative represents (e.g.,
taxpayer, lender, title company, etc.). This allows the
Department to determine what information can be shared with
the representative.

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(revised 11/2014)

Section 5 – Lender/Finance Company
Enter the company name, contact name, and phone number
for the lender to whom the State of Georgia will be
subordinating its interest.

ultimately realize through this subordination will increase and
how collection will be facilitated by the subordination.
Section 8 - Description of Property
1. Enter a detailed description of the collateral you will use for
the loan or other financing. This is the collateral on which you
want the lien interest subordinated to the loan or financing. If
this is real estate, you must provide the legal description.

Section 6 – Monetary Information
1. Enter the amount of your existing or outstanding financing.
2. Enter the amount of new financing you are seeking.

2. When the property is real estate include the type of property, for example, 3-bedroom house; etc. When the property
is personal property include serial or vehicle numbers, as
appropriate.

3. Enter the amount anticipated being paid toward the State of
Georgia’s interest.
Section 7 - Basis for Subordination
A subordination may be granted for one of two reasons.
Review the information below and select the reason which
best applies to your subordination request. If the Department
does not agree with your selection after its review, an
explanation of the decision will be provided.

3. Provide the property’s physical address if it is real estate or
provide the physical address where the property is located, if
it is personal property.
4. Check the appropriate box to indicate whether you
attached a copy of the title or deed to the property.

Choice 1 - A subordination may be issued under this option if
you pay an amount equal to the lien or interest to which the
certificate subordinates the lien of the State of Georgia. The
following example uses an 80% loan to value and a 3%
closing cost to financing ratio.

Section 9 - Appraisal and Valuations
1. Check the “Attached” box after “Appraisal” to indicate
whether you have attached an appraisal by a disinterested
third party. This is typically a professional appraisal providing
a neighborhood analysis, description of the site, description of
the improvements, cost approach, comparable sales,
definition of market value, certification, contingent and limiting
conditions, interior and exterior photos of the property,
exterior photos of comparable sales used, comparable sales
location map, sketch of subject property showing room layout,
flood map, and qualifications of the appraiser. This type of
appraisal is not required for a certificate of
subordination.

Example:
Current/New

Original

Fair Market Value

$200,000

N/A

Refinance

$160,000

$145,000

Closing Costs

$4,800

N/A

State of Georgia Interest

$10,200

N/A

2. Check the appropriate box under the “Or One of the Following Valuations” section to indicate which other type of
property value verification is attached with your application.

In this example the State of Georgia’s interest is the equity
you obtain from your refinanced loan after paying off the
existing loan of $145,000 and paying the closing costs to
obtain the loan.

Section 10 – State Tax Executions
This section is important when the applicant and the taxpayer
are different. This section may be skipped if the applicant and
the taxpayer are the same.

► $200,000 property value x 80% loan to value ratio =
$160,000 refinance loan amount.
► $160,000 - $145,000 loan payoff =
equity.

$15,000 potential

1. Check the “attached” box if you have attached copies of the
state tax executions with your application.

► $160,000 x 3% = $4800 closing costs to obtain the loan.

2. If you checked the “not attached” box list the state tax
execution number if available. If you do not have the
number(s), enter “unknown” in the first box.

► $15,000 potential equity - $4,800 closing costs = $10,200.
The DOR would ask for $10,200 in return for the State of
Georgia subordinating its interest to the refinanced loan. The
lien remains on the property but the refinanced loan has
priority over the lien.

Section 11 – Proposed loan agreement
1. Check the “attached” box if you have attached the
proposed mortgage contract and describe how subordination
is in the best interests of the State of Georgia.

Choice 2 – A subordination may be issued under this option if
the DOR determines that the issuance of the certificate will
increase the amount the State of Georgia realizes and make
collection of the tax liability easier. This might involve a
refinance to a lower interest rate which would, if the
subordination were granted, allow a larger monthly repayment
rate on the tax liability. For an application under this option,
complete and attach a signed and dated statement
describing how the amount the State of Georgia may

2. If you checked the “not attached” box, describe how
subordination is in the best interests of the State of Georgia.
Section 12 – Current Title Report
1. Check the “attached” box if you attached the title report.
This is required for subordination.

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(revised 11/2014)

2. If you checked the “not attached” box and the title report is
not attached, use the space provided to list any encumbrances (liens or claims) against the property and whether those
encumbrances are senior to the State of Georgia’s lien
interest. Include the name and address of the holder;
description of the encumbrance, e.g., mortgage, state lien,
etc.; date of agreement; original loan amount and interest
rate; amount due at time of application; and family
relationship, if applicable. Attach a separate sheet titled
“Section 12” if there is not enough space provided on the
form.

Q2: What is an acceptable form of payment?
Make payments by certified check, cashier’s check, or
treasurer’s check, or a closing attorney's escrow check. If
you pay by personal check, issuance of the certificate of
subordination will be delayed until the bank honors the
check.
Q3: Who makes the decision to issue a Certificate of
Subordination?
The Department’s Compliance Division staff will review and
verify the information provided, determine whether a
certificate of subordination should be issued, and contact you,
your representative, or any person relative to the transaction
for additional information.

Section 13 – Proposed Closing Statement
1. Check the “attached” box if you attached the proposed
closing statement. This statement is often referred to as a
HUD-1.

The State Revenue Commissioner has the responsibility to
review and approve the determination. If approved, you will
receive a conditional commitment letter.

2. If you checked the “not attached” box, use the space
provided to itemize all proposed costs, commissions, and
expenses of any transfer or sale associated with property.

Q4: When will I receive the Certificate of Subordination?

3. Attach a separate sheet titled “Section 13” with the
information in item # 2 above if there is not enough space
provided on the form.

Under choice 1 of Section 7 of this application, you will
receive the certificate after the Department receives payment
of the amount determined by the Department to be the
interest of the State of Georgia in the property subject to the
state tax execution.

Section 14 - Additional Information
1. Check the “yes” indicating whether you are attaching other
documents relevant to the subordination application. This
could include affidavits or court documents.

Under choice 2 of Section 7 of this application, you will
receive the certificate after the Department investigates your
application, verifies the information contained therein, and, if
appropriate, receives either payment or other payment
arrangement of an amount dependent upon how the
subordination will increase the amount the State of Georgia
will ultimately realize and how collection will be facilitated by
the subordination.

2. Check the “no” if you do not have any additional documentation.
Section 15 - Declaration
The applicant or their authorized Power of Attorney signs the
application form. You must sign your application under
penalties of perjury attesting to having examined the
application, accompanying schedules or documents, exhibits,
affidavits, and statements and declaring to the best of your
knowledge and belief that it is true, correct and complete.

The DOR agent handling the matter will notify you of the
decision, any payment or payment arrangement (if
applicable), and a projected date for mailing of the certificate
of subordination.

Frequently Asked Questions
Q1: When do I make a payment?
The option under which the certificate of subordination will be
issued or granted determines the details regarding making a
payment.
• Subordination under choice 1 of Section 7 of this application
requires a payment, but do not send a payment with the
application. The DOR agent handling the matter will notify you
after determining the amount due and when to send payment.
• Subordination under choice 2 of Section 7 of this application
may require a payment and/or other payment options (such
as an installment payment plan) depending on how the
subordination will increase the amount the State of Georgia
will ultimately realize and how collection will be facilitated by
the subordination.

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