Question

Flint is purchasing a home for $115,750 and is financing 85% of it. The documentary stamp tax on the deed in his state is $0.70 per $100 or portion thereof. How much will he pay for the documentary stamp tax?

Answer 1

Answer:

$ 810.25

Explanation:

The purchasing cost of the home = $ 115,750

The documentary stamp tax on the deed = $ 0.70 per $ 100 = $ 0.70 / 100

Since, the tax is applied to the purchasing value of the home not on the financing amount

Thus,

for the home,

the documentary stamp tax = ( $ 0.70 / $ 100 ) × $ 115,750

or

the documentary stamp tax = $ 810.25