Maine Real Estate License Practice Exam

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What is the total transfer tax on a property selling for $293,600?

$1,291.84
$1,293.60
$646.80
$645.92

The correct answer is: $1,293.60

To determine the total transfer tax on a property selling for $293,600, it is crucial to apply the appropriate transfer tax rate, which in Maine is typically based on the sale price of the property. The transfer tax rate in Maine is calculated at a standard rate of $2.20 per $500 of the selling price. So, you first need to convert the selling price to the corresponding units of $500. 1. Divide the sale price by $500: \[ 293,600 ÷ 500 = 587.2 \] 2. Now, multiply the result by the transfer tax rate of $2.20: \[ 587.2 × 2.20 = 1,293.60 \] This calculation shows that the total transfer tax on a property selling for $293,600 is indeed $1,293.60. Therefore, the reason the answer is accurate and fits the correct computation is that it reflects proper adherence to the transfer tax structure that Maine utilizes, ensuring that all calculations are based on the correct application of the rate to the evaluated property value.