A property in Warwick, Rhode Island sells for $380,000. Under Rhode Island's Transfer of Real Property Act (R.I. Gen. Laws § 44-25), the deed excise tax is assessed at $2.30 per $500 (or fraction thereof) of the purchase price. What is the total deed excise tax due at closing?
Correct Answer
A) $1,748.00
Step 1: Divide the purchase price by $500: $380,000 ÷ $500 = 760 (exactly, no fraction). Step 2: Multiply the number of $500 units by the tax rate: 760 × $2.30 = $1,748.00. The total deed excise tax due is $1,748.00, customarily paid by the seller at closing under Rhode Island law.
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