The sale of real estate is subject to the real estate excise tax (REET).  The tax base is the selling price of the real estate, without any deduction for mortgages, liens, or other debts.  REET is typically paid by the seller.

REET is imposed at the following rates:

• 1.1 percent if the selling price is equal to or less than $500,000;
• 1.28 percent on the portion of the selling price that is greater than $500,000 but equal to or less than $1,500,000;
• 2.75 percent on the portion of the selling price that is greater than $1,500,000 but equal to or less than $3,000,000; and
• 3.0 percent on the portion of the selling price that is greater than $3,000,000.

A rate of 1.28 percent is imposed on the sale of timberland or agricultural land, regardless of selling price.

A REET rate of 1.28 percent is imposed on the sale of multiple-unit housing, regardless of selling price.  Multiple-unit housing is defined to include a building or a group of buildings having four or more dwelling units, not designed or used as transient accommodations, and not including hotels and motels, in which at least 50 percent of the total square footage of the building or group of buildings are residential units.