Help Calculating Real Estate Tax

[YoshiMoshi]

Homework Statement

In one state, the transfer tax is $0.80 per $500 or fraction thereof. There is no tax charged on the first $500 of the price. What tax must the seller pay if the property sells for $329,650?
A. $525.60
B. $526.40
C. $527.20
D. $528.00

Relevant Equations

Basic Percentage

Apparently the correct answer is C $527.20.
I'm having a hard time understanding this. My solution is as follows:
(329650/500 - 1)(0.80) = $526.64
Which is not one of the answers.
Apparently the correct solution is:
ceiling(329650/500 - 1)(0.80) = $527.20
Which is Answer C.
My question is why do you round up to the nearest value? I understand "or fraction of" to be that the state wants to tax you on every dollar, even a "fraction of" $500.
329650/500 - 1 = 658.3
So you owe 658*.8 + .3*.8 = $526.64
I disagree completely with rounding it up to 659. I'll provide a similar worded question to explain.
The state wants to tax you 6.25 % sales tax for every dollar you spend (or fraction thereof). You buy something that costs $1.50. What is the final sales price?
1.50 + (1.50/1)(0.0625) = 1.59375
and NOT
1.50 + ceiling(1.5/1)(0.0625) = 1.625
Can someone please explain to me why in the original multiple choice question I'm supposed to round up? I get that the state wants to tax every penny, but why should I get taxed on more than I'm spending? I did not spend 323,000 on a house but 329,650. So why would I get taxed as if I spent 323,000? Maybe this is something unique to real estate? I'm really confused. Maybe the book is wrong. The book did not provide an explanation as to why to round up.

 

[BvU]

It doesn't specify a percentage like you do in your example, but an amount of $0.80 per $500 or fraction thereof
The wording is crystal clear. On a selling price of $ 500.01 you pay $0.80.

Maybe this is something unique to real estate? I'm really confused. Maybe the book is wrong

No on first and last.

 

[pbuk]

Can someone please explain to me why in the original multiple choice question I'm supposed to round up?

Because that is the way the word "fraction" is being used here. If you find this confusing it might help if you read it as "the transfer tax is $0.80 per $500 or any part thereof".

 

[Mark44]

The wording is crystal clear. On a selling price of $ 500.01 you pay $0.80.

@YoshiMoshi, in case what I quoted isn't crystal clear, the above price is $500 + $.01. For the $500, the tax is 0, but for the 1 cent, that tiny fraction of $500 incurs a tax of $.80.