A Chicago property sells for $715,250. Under Chicago's city transfer tax, the buyer's rate is $3.75 per $500 (or fraction thereof) of the sale price. What is the total city transfer tax owed by the buyer?
Correct Answer
A) $5,366.25
Under Chicago Municipal Code § 3-33, the transfer tax is calculated per $500 or fraction thereof. Dividing $715,250 by $500 yields 1,430.5, which rounds up to 1,431 taxable units. Multiplying 1,431 × $3.75 = $5,366.25. The 'fraction thereof' rule requires rounding any partial unit up to the next whole unit, which is why 1,430.5 becomes 1,431.
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