A Montana real estate agent is explaining property tax concepts to a first-time buyer. Which of the following statements about Montana's property tax system is NOT accurate?
Correct Answer
D) Montana imposes a statewide transfer tax on all real property sales, which is collected at closing and paid to the state.
Montana does NOT impose a statewide real property transfer tax. Montana is one of the few states with no general sales tax and no state-level real estate transfer tax. This makes Option D the inaccurate statement. Agents must be careful not to include a transfer tax line item when calculating Montana closing costs, as this is a common error made by candidates from states that do impose transfer taxes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
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- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
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- → Three depreciation:
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