In the real estate industry, concepts and processes are always evolving. Even so, history plays a big role in the way that we do things, and often the names that we give to more modern processes and ideas. One such idea is that of revenue stamps. So what are revenue stamps?
A revenue stamp, which is essentially the property tax that the seller will be responsible for paying when they sell their property, has its origins in the Revolutionary War-era Stamp Act. The Stamp Act, which was a method of collecting taxes and raising funds for the government, involved the use of actual physical stamps; today, the namesake has been eliminated from the process but the concept remains – revenue stamps are all about paying and collecting taxes on property being sold by individuals.
So how exactly is the value of a revenue stamp in Asheville calculated – that is, how is the amount of tax owed on a property being sold in Asheville, Hendersonville, or the rest of WNC determined? The official guideline states that the tax will be approximately $1 for every $500 in sale. To more easily calculate a ballpark estimation, sellers can adapt this number to instead calculate $2 for every $1,000 in sales. This provides for a simple calculation: sales price multiplied by 0.002 equals approximate tax owed on the sale. If, for example, you’re selling a home for $100,000, you need simply multiple 100,000 by 0.002 to find that owed will be approximately $200.
The concept and calculation of revenue stamps is fairly straightforward, but is still an important aspect of selling a home. By understanding what revenue stamps are and how to approximate the value of your property’s revenue stamp when selling in Asheville or Hendersonville, you will be able to estimate your costs as a seller and effectively prepare for them.
To learn more about revenue stamps, reach out to Asheville Cash Buyers at 828-222-6443 or visit AshevilleCashBuyers.com today!