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FinancingChicago_real_property_transfer_tax_current_ratesMEDIUM

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.

Answer Options
A
Divide $182,300 by $500 and round down to the nearest whole number, discarding any fraction.
B
Divide $182,300 by $500 and round up to the next whole number if any fraction remains.
C
Divide $182,300 by $500, truncate the decimal, and charge only for fully completed $500 increments.
D
Divide $182,300 by $500 and apply the rate to the exact decimal result without any rounding.

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Key Terms:

chicago_real_property_transfer_tax_current_rateschicago_transfer_tax_750_per_500definitiondifficulty_3illinois_stateptax203roundingtransfer_tax
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