A vacation property in Bar Harbor, Maine, sells for $440,000. The buyer is a Massachusetts resident and the seller is a Maine resident. Maine's real estate transfer tax applies at $2.20 per $500 of value (or fraction thereof). What is the total transfer tax due at closing, and how much does the buyer owe?
Correct Answer
A) Total tax $1,936.00; buyer owes $968.00
Step 1 — Determine the number of $500 units: $440,000 ÷ $500 = 880 units (no fraction, so exactly 880). Step 2 — Calculate total transfer tax: 880 × $2.20 = $1,936.00. Step 3 — Split equally between buyer and seller per 36 M.R.S. § 4641: $1,936.00 ÷ 2 = $968.00 each. The buyer owes $968.00 and the seller owes $968.00. The residency of the parties does not affect the transfer tax calculation or split.
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