Which tax is commonly associated with the transfer of a property and noted on the closing documents?

The intangible tax is a tax that is assessed on the value of certain intangible assets, which can include the transfer of property. This tax is typically noted on the closing documents when a property changes ownership. In many jurisdictions, the intangible tax is relevant during real estate transactions, as it applies to the value derived from the right to own the property, rather than the physical property itself.

Other types of taxes such as property tax are generally ongoing taxes assessed annually on real estate ownership, capital gains tax relates to profit made from the sale of property but does not apply to the transfer process itself, and sales tax is a consumption tax imposed on goods and services, which is not applicable to real estate transfers. Thus, the intangible tax stands out because it directly correlates with the property transfer process and is specifically recorded at closing.