Is the intangible tax related to the total cost of the home?

The intangible tax is indeed related to the loan amount rather than the overall selling price of the home. This tax primarily applies to the borrowing of money for real estate purchases, making it a cost associated with financing rather than with the property's market value itself. The intangible tax is assessed based on the loan amount secured to finance the purchase, which reflects the lender's risk and the borrower's obligation to repay that amount.

Understanding this distinction is crucial because it differentiates the costs incurred when securing a mortgage from other costs involved in purchasing real estate, such as property taxes which are based on the assessed value of the property, or other potential fees associated with the sale. This clarification emphasizes the importance of recognizing how the intangible tax functions within the broader context of real estate transactions and financing.