Final answer:
A transfer tax is a tax based on the price of property being conveyed. It is imposed when a property is transferred or sold from one person to another.
Step-by-step explanation:
A transfer tax is a tax that is based on the price of the property being conveyed. It is imposed when a property is transferred or sold from one person to another. This tax is usually a percentage of the property's selling price and is paid by the buyer or seller, depending on local regulations.
Transfer taxes are typically imposed by local or state governments, and the rates and rules can vary depending on the jurisdiction. The purpose of transfer taxes is to generate revenue for the government and to regulate property transactions.