Final answer:
The tax paid by the seller to the county and state when recording a deed is known as the property transfer tax or deed transfer tax, which is based on the assessed value of the property.
Step-by-step explanation:
The tax that is due to the county and the state for recording a deed and is paid by the seller is known as the property transfer tax or sometimes referred to as deed transfer tax. This tax is often a percentage of the sale price or a flat fee and varies by locality. When a property is sold, the seller is typically responsible for paying this tax, which contributes to the revenue used by municipal governments for services such as schools, roads, and emergency services.
Property taxes are based on the assessed value of real estates, such as houses, gardens, mills, and fields. An official assesses the property's value, and the tax is calculated proportionally. In some jurisdictions, property taxes are considered progressive, since property ownership is usually concentrated among higher income groups.