Thomas and Sandra are purchasing a lakefront home in Moultonborough, New Hampshire for $480,000. Under New Hampshire's Real Estate Transfer Tax (RSA Chapter 78-B), what is the total transfer tax due, and how much will each party owe?
Correct Answer
B) Total tax: $7,200; buyer pays $3,600 and seller pays $3,600
Under RSA 78-B, New Hampshire real estate transfer tax is $0.75 per $100 of consideration for each party. On a $480,000 sale, $480,000 ÷ $100 = 4,800 units. Each party owes 4,800 × $0.75 = $3,600, so the combined transfer tax is $7,200. The correct answer is the option stating total tax $7,200, with buyer paying $3,600 and seller paying $3,600.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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.
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