Legal Definitions - transfer tax

Definition: A monetary charge imposed by the government on persons, entities, transactions, or property to yield public revenue. It is a type of tax that is paid when ownership of a property or asset is transferred from one person to another.

For example, when a person sells their house to another person, they may be required to pay a transfer tax to the government. The amount of the tax is usually a percentage of the sale price of the property.

Another example is when a company transfers ownership of its assets to another company. The government may require the payment of a transfer tax on the value of the assets being transferred.

Transfer taxes are a way for the government to generate revenue from the transfer of property or assets. They are often used to fund public services and infrastructure projects.