A property in Nashville sells for $347,500. The seller is responsible for paying the Tennessee realty transfer tax at the rate of $0.37 per $100 of consideration (or fraction thereof). What is the total transfer tax owed at closing?
Correct Answer
A) $1,285.75
Step 1 — Determine the number of $100 units: $347,500 ÷ $100 = 3,475 (exactly, no fraction). Step 2 — Multiply by the tax rate: 3,475 × $0.37 = $1,285.75. Because $347,500 divides evenly by $100, no rounding up is required. The total transfer tax is $1,285.75. Under Tenn. Code Ann. § 67-4-409, the tax is $0.37 per $100 or fraction thereof, customarily paid by the seller.
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