California Real Estate SalespersonTransfer of PropertyMedium
A home sells for $620,000 in a California county that imposes only the standard county documentary transfer tax rate. What is the amount of documentary transfer tax due?
- A$620.00
- B$1,240.00
- C$682.00
- D$310.00
Show answer & explanationAnswer & explanation
Correct answer: C. $682.00
The standard California county documentary transfer tax rate is $1.10 per $1,000 of sale price (or $0.55 per $500). $620,000 ÷ $1,000 = 620 units × $1.10 = $682.00. Some cities impose additional city transfer taxes, but the standard county rate alone yields $682.
Why the other options are wrong
- A. This equals only $1.00 per $1,000, which is not the standard statutory rate.
- B. This doubles the correct tax, an incorrect calculation.
- D. This equals only $0.50 per $1,000, an incorrect rate.
Documentary Transfer Tax
A tax imposed on transfers of real property, calculated at $1.10 per $1,000 of the sale price (county rate) under California Revenue and Taxation Code.
- Standard rate: $1.10 per $1,000 (or $0.55 per $500)
- Based on consideration paid, minus any assumed liens in some cases
- Cities may impose additional local transfer taxes
Memory trick: $1.10 per $1,000 — 'a dollar ten for every grand'