A Michigan home sells for $240,000. The seller is responsible for paying the Michigan state real estate transfer tax at the rate of $7.50 per $1,000 of value. What is the total state transfer tax the seller owes at closing?
Correct Answer
B) $1,800.00
Step 1: Divide the sale price by $1,000 to determine the number of taxable units. $240,000 ÷ $1,000 = 240 units. Step 2: Multiply the number of units by the state transfer tax rate. 240 × $7.50 = $1,800.00. The seller owes $1,800.00 in Michigan state real estate transfer tax at closing.
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