David is selling his single-family home in Virginia Beach, Virginia for $450,000. Under Virginia Code § 58.1-801, the state grantor's tax is imposed at a rate of $0.50 per $500 of the sale price (or fraction thereof). Additionally, the local jurisdiction imposes a grantor's tax of $0.33 per $100 of the sale price. What is the total amount David will owe in grantor's taxes (state + local) at closing?
Correct Answer
A) $1,935.00
Step 1 — State grantor's tax: Rate is $0.50 per $500. Number of $500 units in $450,000 = $450,000 ÷ $500 = 900 units. State tax = 900 × $0.50 = $450.00. Step 2 — Local grantor's tax: Rate is $0.33 per $100. Number of $100 units in $450,000 = $450,000 ÷ $100 = 4,500 units. Local tax = 4,500 × $0.33 = $1,485.00. Step 3 — Total grantor's taxes = $450.00 + $1,485.00 = $1,935.00. The correct answer is $1,935.00.
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