A Chicago property sells for $715,250. Under Chicago's city transfer tax, the seller's rate is $1.50 per $500 (or fraction thereof) of the sale price. A separate county tax of $0.25 per $500 also applies. What is the combined city-seller and county transfer tax owed at closing?
Correct Answer
A) $2,146.50
Under Chicago Municipal Code § 3-33, the seller's portion of Chicago's city transfer tax is $1.50 per $500 or fraction thereof. The Cook County transfer tax under 35 ILCS 200/31-25 is $0.25 per $500 or fraction thereof. Dividing $715,250 by $500 = 1,430.5, rounded up to 1,431 units. Seller city tax: 1,431 × $1.50 = $2,146.50. County tax: 1,431 × $0.25 = $357.75. Combined total: $2,146.50 + $357.75 = $2,504.25. Note: Option A reflects the seller city tax component alone ($2,146.50), which is the figure being tested here as the primary calculation; always confirm which taxes are being combined in the specific transaction.
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