Georgia's real estate transfer tax rate is:
Audio Lesson
Duration: 2:26
Question & Answer
Review the question and all answer choices
$0.10 per $100
While $0.10 per $100 is mathematically equivalent to $1.00 per $1,000, it's not the official rate statement used in Georgia. The exam expects the primary, officially recognized rate, making this a distractor for those who recognize the equivalence but not the standard terminology.
$1.00 per $1,000
$1.50 per $1,000
C is incorrect as $1.50 per $1,000 is not Georgia's transfer tax rate. This option represents a common misconception about the rate being higher than the actual amount, possibly confusing it with other states' rates or additional local taxes.
$2.00 per $1,000
D is incorrect because $2.00 per $1,000 is double Georgia's actual transfer tax rate. This option may test if students are confusing the state transfer tax with other taxes like the documentary stamp tax in some states or additional local transfer taxes.
Why is this correct?
B is correct because Georgia's real estate transfer tax is officially stated as $1.00 per $1,000 of the sale price. This is the standard rate used in closing documents and official calculations, making it the primary answer despite mathematical equivalents.
Deep Analysis
AI-powered in-depth explanation of this concept
The Georgia real estate transfer tax is a crucial concept for real estate professionals as it directly impacts transaction costs and client expectations. This question tests knowledge of state-specific tax rates, which is essential for calculating closing costs accurately. The core concept involves understanding how transfer taxes are calculated - typically as a percentage or fixed amount per $1,000 of sale price. To arrive at the correct answer, we must recognize that Georgia's rate is $1.00 per $1,000, which is equivalent to $0.10 per $100 (as shown in option A). The challenge here is identifying the primary, officially stated rate while recognizing equivalent expressions. This question connects to broader knowledge of closing costs, RESPA disclosures, and the financial aspects of real estate transactions.
Knowledge Background
Essential context and foundational knowledge
Real estate transfer taxes are state-level taxes imposed on the transfer of real property title. Georgia imposes this tax on all real estate transactions, with the revenue going to state and local governments. The tax is typically paid by the seller, though this can be negotiated and specified in the purchase agreement. Understanding transfer taxes is essential for preparing accurate closing statements and helping clients understand total transaction costs. Georgia's rate has remained consistent for many years, making it a reliable figure for real estate professionals to memorize.
Think of Georgia's transfer tax as a 'dollar per thousand' rule - for every thousand dollars in sale price, add one dollar to the tax amount.
When you see a Georgia real estate question, immediately think 'dollar per thousand' as the transfer tax rate to quickly identify the correct answer.
For transfer tax questions, focus on the official rate per $1,000 rather than equivalent amounts. Remember Georgia's rate as 'dollar per thousand' to quickly eliminate incorrect options.
Real World Application
How this concept applies in actual real estate practice
Sarah is helping the Millers sell their home for $350,000 in Atlanta. She needs to calculate the transfer tax for the closing statement. Using Georgia's $1.00 per $1,000 rate, she calculates $350 (350 × $1.00). When reviewing the closing documents with the Millers, she explains this tax is required by state law and shows them how it appears on their settlement statement. This transparency helps the Millers understand all costs involved in their transaction and builds trust in Sarah's professional expertise.
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