1) It appears you indeed meet the "2 of the last 5 years" exclusion requirements, so the first $500,000 (assuming you are married) of gains are tax free. I can't state whether there are any capital gains taxes because you never stated what you gain would be.
2) It appears that completing form IT-AFF3 is the appropriate form to complete, assuming the gain is less than $500,000. Note the first reason is that the you are exempt from reporting the gain on federal tax returns.
https://dor.georgia.gov/it-aff3-sellers-certificate-exemption.
3) Otherwise, it appears that if the gain is more than $500,000, then IT-AFF2 would need to be completed so that the closing statement only withholds 3% of the gain, instead of 3% of the purchase price.
What GA appears to be attempting to do is collect the income tax at the closing table as it's problematic for them to go after out-of-state residents should the seller not submit a state income tax return.
@TaxWander
