Sandra is selling her home in Richmond, Virginia, for $380,000. Virginia imposes a state grantor's tax of $0.50 per $500 (or fraction thereof) of the sales price on the seller. The local grantor's tax for the City of Richmond is an additional $0.33 per $100 of the sales price. What is the total amount Sandra will owe in grantor's taxes (state + local) at closing?
Correct Answer
D) $1,634.00
State grantor tax is $380,000 ÷ $500 × $0.50 = $380.00. Local tax is $380,000 ÷ $100 × $0.33 = $1,254.00. Total grantor tax is $380.00 + $1,254.00 = $1,634.00. Option D is correct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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