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A tax on a sale of property, especially the sale of a security. This is rarely used in the United States. In 1968, the City of Philadelphia levied a small transaction tax on all shares traded on the Philadelphia Stock Exchange, which caused the Exchange to move to Bala Cynwyd, immediately outside Philadelphia, until the tax was rescinded. More rarely, the term transaction tax may refer to a tax on the transfer of title on any property such as real estate. In this sense, capital gains taxes and estate taxes are transaction taxes. It is also called a transfer tax. See also: Stamp duty.
1. A tax on the transfer of securities that is paid by the seller. The SEC also imposes a small fee (1¢ per $500 value) on securities that are sold.
2. A tax on the transfer of assets by gift or by death.
A state or local tax imposed when title is transferred from one owner to another.
A tax imposed when real estate is sold or transferred from one person to another.