A home in San Francisco sells for $1,500,000. Under San Francisco's current transfer tax ordinance, the applicable city transfer tax rate for properties valued between $1,000,000 and $4,999,999 is $6.80 per $1,000 of value, and the California county documentary transfer tax rate is $1.10 per $1,000. What is the total combined transfer tax due at closing?
Correct Answer
C) ,$11,850
Step 1 — County documentary transfer tax (Revenue and Taxation Code §11911): $1,500,000 ÷ $1,000 = 1,500 units × $1.10 = $1,650. Step 2 — San Francisco city transfer tax (SF Business and Tax Regulations Code, Article 12-C): For properties valued between $1,000,000 and $4,999,999, the applicable rate is $6.80 per $1,000. $1,500,000 ÷ $1,000 = 1,500 units × $6.80 = $10,200. Step 3 — Total: $1,650 + $10,200 = $11,850. Note: In San Francisco, transfer tax is customarily negotiated between buyer and seller as part of the purchase contract; it is not legally mandated to be paid exclusively by either party.
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Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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