When calculating documentary stamps, what value should be divided by 100 first?

When calculating documentary stamps, the sale price of the property is the value that should be divided by 100 first. This process is essential because documentary stamp taxes are typically a percentage of the total transaction amount, which is usually based on the sale price of real estate. By dividing the sale price by 100, you are essentially determining the taxable unit amount to apply the appropriate tax rate to. This method ensures that the documentary stamps are calculated correctly, reflecting the tax due based on the financial value of the real estate transaction.

Alternative values provided, such as the amount of the mortgage, may be associated with separate tax calculations and requirements but are not used directly in this initial calculation of documentary stamps. Consequently, understanding that the sale price sets the basis for the tax calculation is crucial to accurately assessing and adhering to state tax obligations related to property transactions.