The Commonwealth of Massachusetts derives revenue (read: Money) from the sale of real estate through the sale of State Tax Stamps (yes, many years ago they were actual 'stamps' affixed to the deed. Now, they are just numbers on the deed which shows the amount removed from the Seller's wallet).
The amount of the excise tax stamp differs from time to time depending on the action of the State General Court. In Worcester County and Northern Worcester County, the seller, by custom, is obligated to pay for the amount of this stamp tax (excise tax) just as the buyer is accountable for paying the recording fee for the deed and his/her mortgage.
The money paid for the tax stamps is income to the Registry and is forwarded to the Commonwealth of Massachusetts Department of Revenue. The current tax stamp rate is $2.28 per $500.00 of sale price (or $4.56 per $1,000.00 of sale price).
Lets assume you sell your house for $400,000 in Massachusetts: You must pay the State of Massachusetts (what is in essence) an Excise Tax in the amount of $1,824.00 for the privelidge of selling your property in the Commonwealth of MA.
As I said in the title - Tax-achusetts gets you both coming and going!
Monday, May 5, 2008
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