David sells his Knoxville investment property for $347,250. Using the Tennessee realty transfer tax rate of $0.37 per $100 (or fraction thereof), what is the total transfer tax owed at closing?
Correct Answer
D) $1,285.01
Tennessee realty transfer tax is $0.37 per $100, or fraction thereof. Divide $347,250 by $100 to get 3,472.5 taxable units, then round up the fractional unit to 3,473. Multiplying 3,473 by $0.37 equals $1,285.01, so option D is correct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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.
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