A transfer tax is charged at $2.00 per $1,000 of sale price. If the property sells for $350,000, what is the transfer tax?
Correct Answer
D) $700
Step 1: Taxable units = $350,000 ÷ $1,000 = 350. Step 2: Transfer tax = 350 × $2.00 = $700.
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Related Topics & Key Terms
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Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
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