How is the stamp tax calculated on a deed for a property sold for $210,000?

The correct method of calculating the stamp tax on a deed in Florida is by using the price of the property sold and applying the established formula related to the tax rate. In Florida, the documentary stamp tax on deeds is typically calculated at a rate of $0.70 per $100 of the sale price.

In this case, to determine the total tax for a property sold at $210,000, the formula involves dividing the sale price by 100 and then multiplying that result by the tax rate of $0.70. This approach accurately reflects the tax structure as it converts the total price into a basis for the tax rate.

For a property price of $210,000, the calculation would be:

1. Divide the sale price by 100, which gives you $2,100.
2. Multiply that by the stamp tax rate of $0.70, which results in $1,470.

By employing this methodology, it's clear how the correct answer effectively adheres to the established tax rate system for documentary stamps in Florida real estate transactions.