David sells his Westport home for $1,200,000. The municipality has enacted the maximum allowable local conveyance tax. What is the total Connecticut conveyance tax (state plus municipal) that David owes at closing?
Correct Answer
C) $13,000
Step 1 — State conveyance tax (CGS § 12-494): The first $800,000 is taxed at 0.75% = $800,000 × 0.0075 = $6,000. The amount between $800,000 and $1,200,000 is $400,000, taxed at 1.25% = $400,000 × 0.0125 = $5,000. State tax total = $6,000 + $5,000 = $11,000. Step 2 — Municipal conveyance tax: The maximum municipal rate is 0.25% on the entire sale price = $1,200,000 × 0.0025 = $3,000. Step 3 — Total = $11,000 + $3,000 = $13,000 (option C).
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Valuation Question
Background Knowledge for Valuation
Real World Application in Valuation
Common Mistakes to Avoid on Valuation Questions
Related Topics & Key Terms
Key Terms:
More Valuation Questions
The appraisal principle of substitution states that:
Physical deterioration, functional obsolescence, and external obsolescence are the three types of:
Highest and best use means the use that is:
In the sales comparison approach, adjustments are always made to the:
The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which formula best represents the cost approach to appraisal?
- → Which appraisal method is most commonly used for residential properties and relies on recent sales of comparable properties?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → A West Virginia property with 4 bedrooms but only 1 bathroom suffers from:
- → A Comparative Market Analysis (CMA) is best described as:
- → James owns a farm in rural Tennessee that qualifies for the Greenbelt Law. Under Tennessee's Greenbelt Law, how is agricultural land assessed for property tax purposes?
- → Which of the following correctly identifies the three types of depreciation recognized in real estate appraisal?
- → Which four criteria must a use satisfy to qualify as the highest and best use of a property?
- → Highest and best use:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Financing
12% of exam
Previous Question
Maria sells her single-family home in Hartford for $600,000. When calculating the Connecticut state conveyance tax, which rate applies to the entire sale price?
Next Question
A Connecticut municipality wants to impose a local real estate conveyance tax in addition to the state conveyance tax. Under CGS § 12-494, what is the maximum local conveyance tax rate that most municipalities are authorized to charge?