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please solve the following question. 1. Conveyance fees (10 points) In Ohio, conveyance fees are paid by those selling real estate. The state collects a
please solve the following question.
1. Conveyance fees (10 points) In Ohio, conveyance fees are paid by those selling real estate. The state collects a mandated $1 per every $1,000 of the property sale amount. Counties can charge up to $3 per every $1,000 of the sale amount in $1 increments. The Board of Commissioners is considering an increase in the conveyance fee. The county currently collects $1 per every $1,000 with a projected total of $14.0 million to be collected in 2022. Under the current rate, property owners in the county pay $2 per every $1,000 of their sale amount, with $1 of the fee going to the state and $1 of the fee going to the county. The Commissioners are proposing an increase of $1 per every $1,000 of the property sale amount, resulting in property owners in the county paying a total of $3 per every $1,000. Based on the current real estate activity in the county, the Office of Management & Budget (OMB) is forecasting a 4.0% increase in the value of real estate sales ($) and that the number of transactions will remain unchanged in 2023. To assist in their consideration, the Board of Commissioners would like the responses to the following questions: a) Based on OMB's forecast, how much additional revenue would the county collect from the current $1 per every $1,000 conveyance fee in 2023? b) If the Board of Commissioners raised the county's portion of the conveyance fee to $2 per every $1,000 of the property sale amount, how much would the county's conveyance fee revenue be in 2023? c) If the Board of Commissioners raised the county's portion of the conveyance fee to $2 per every $1,000 of the property sale amount, how much would the TOTAL conveyance fee cost a county property owner when she sells her home for $150,000 Step by Step Solution
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