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Virginia's grantor tax (transfer tax) is:

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Question & Answer

Review the question and all answer choices

A

$0.50 per $500 of value

Correct Answer
B

$1.00 per $1,000 of value

This option incorrectly states $1.00 per $1,000, which is double the actual rate. Many states use this rate, but Virginia's specific rate is half of this amount.

C

No transfer tax

Virginia does have a transfer tax, unlike some states. This misconception may arise from confusion with states that don't impose this tax.

D

1% of sale price

1% of sale price would represent a significantly higher tax burden than Virginia's actual rate of approximately 0.1% ($0.50 per $500).

Why is this correct?

Virginia's grantor tax is specifically $0.50 per $500 of value, which translates to $1.00 per $1,000. This is a state-mandated tax that must be collected at closing and is based on the property's consideration or value.

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