An Illinois property sells for $187,500 in a county that imposes the maximum allowable county transfer tax of $0.25 per $500. What is the combined state and county transfer tax due at closing?
Correct Answer
B) $281.25
$187,500 ÷ $500 = 375 increments (no rounding needed as the price divides evenly). The combined rate is $0.50 (state) + $0.25 (county) = $0.75 per $500. 375 × $0.75 = $281.25. This reflects the Illinois Real Estate Transfer Tax Act (35 ILCS 200/31-10), which sets the state rate at $0.50 per $500, and the county's authority to levy up to $0.25 per $500 under 55 ILCS 5/5-1031.
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