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Minnesota deed tax is:

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Question & Answer

Review the question and all answer choices

A

No deed tax

A is incorrect because Minnesota does impose a deed tax. No state completely eliminates all transfer taxes, and Minnesota specifically uses the $0.0033 per dollar rate as its standard.

B

$0.0033 per dollar of sale price (0.33%)

Correct Answer
C

1% of sale price

C is incorrect because 1% is higher than Minnesota's actual deed tax rate of 0.33%. This option might represent rates in other states or confuse deed tax with other transfer fees.

D

$1.00 per $1,000

D is incorrect because Minnesota doesn't use a flat fee per $1,000 for deed tax. This calculation method is used in some other states for different types of transfer taxes or recording fees, but not in Minnesota.

Why is this correct?

Option B is correct because Minnesota deed tax is specifically calculated at $0.0033 per dollar of sale price, which equals approximately 0.33% of the transaction value. This percentage-based calculation is Minnesota's established method for deed tax assessment.

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