A property in Illinois sells for $182,300. How must the number of $500 units be determined before applying the Illinois state transfer tax rate?
Correct Answer
B) Divide $182,300 by $500 and round up to the next whole number if any fraction remains.
B is correct. PTAX-203 instructions require the filer to divide the consideration by $500 and, if the result is not a whole number, round up to the next whole number before multiplying by the $0.50 per $500 state rate. For $182,300 ÷ $500 = 364.6, which rounds up to 365 units, yielding a state transfer tax of $182.50.
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