|
The welcome tax or Transfer tax is calculated in the following way:
|
0.5%
|
Of the first $50,000
|
($1 - $50,000)
|
|
1%
|
Of the next $200,000
|
($50,001 - $250,000)
|
|
1.5%
|
Of the remainder of the amount
|
(> $250,000)
|
Here are some examples:
(we assume the sale price of all properties in these examples are greater than their M.U.C. evaluation)
Example #1: Sale price $50,000
0.5% x $50,000 = $250
The amount to pay as Welcome tax or Transfer tax is $250.
Example # 2: Sale price $300,000
0.5% x $50,000 = $250
0.1% x $200,000 = $2,000
1.5% x $50,000 = $750
The amount to pay as Welcome tax or Transfer tax is $3,000.
|