Margaret is purchasing a home in Burlington, Vermont for $320,000. The property will be her primary residence. She is financing $256,000 through a conventional lender. At closing, who is responsible for paying the Vermont Property Transfer Tax, and what is the applicable rate on the amount above $100,000?
Correct Answer
C) The buyer pays the tax; 1.25% on the amount above $100,000
Under 32 V.S.A. Chapter 231, the Vermont Property Transfer Tax is paid by the buyer at closing. For a primary residence, the rate is 0.5% on the first $100,000 of value and 1.25% on the remaining value above $100,000. Since Margaret's purchase is $320,000, the amount above $100,000 is $220,000, taxed at 1.25%.
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