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A "documentary stamp" is a type of tax that some states in the U.S. charge on certain legal documents, like deeds, mortgages, or promissory notes. It's a fee that you pay when you record these documents with the government, and the money goes to the state. The tax is usually based on the value of the property or the amount of the transaction.
For example, let's say you live in a state that charges a documentary stamp tax of $1 for every $1,000 of the property's value. If you buy a house for $200,000, you would have to pay $200 in documentary stamp tax ($200,000 / $1,000 x $1).
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land where laws are made, and taxes must be paid,
A "documentary stamp" is a fee that cannot be delayed.
On papers that are legal, and record a home you buy,
You pay this tax to the state, when the papers reach the sky.
Imagine now, a lovely house, worth two hundred grand,
In a state where stamps are needed, just as the law demands.
One dollar for each thousand, is the tax that you must pay,
Two hundred dollars total, as the papers make their way.
In the land of stamps and taxes, where documents are filed,
A "documentary stamp" is a fee that's reconciled.
It goes to help the state, in its need for revenue,
A tax that's tied to value, for papers that are true.