What is the rate for the state intangible tax on a new mortgage?

What is the rate for the state intangible tax on a new mortgage?

• A. 0.001 per dollar of debt
• B. 0.002 per dollar of debt
• C. 0.005 per dollar of debt
• D. 0.010 per dollar of debt

Answer: (B)

The state intangible tax on a new mortgage is set at a rate of 0.002 per dollar of debt. This means that for every dollar borrowed in a new mortgage, the borrower is required to pay two-tenths of a cent as an intangible tax. Understanding this rate is crucial for buyers and borrowers, as it impacts the overall cost of obtaining a mortgage. Knowing the correct rate allows real estate professionals and borrowers alike to accurately assess the financial implications of a mortgage and ensure compliance with state tax regulations.

The state intangible tax on a new mortgage is set at a rate of 0.002 per dollar of debt. This means that for every dollar borrowed in a new mortgage, the borrower is required to pay two-tenths of a cent as an intangible tax. Understanding this rate is crucial for buyers and borrowers, as it impacts the overall cost of obtaining a mortgage. Knowing the correct rate allows real estate professionals and borrowers alike to accurately assess the financial implications of a mortgage and ensure compliance with state tax regulations.