HomeMy WebLinkAbout1979-26 Imposing a Land Transfer Tax Upon the Transfer of Interests in Real Property; Earmarking the Proceeds Therefrom for the Purchase of Real Property to be Used for Open Space, Recreational or Park Purposes
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ORDINANCE N0. 26
Series of 1979
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AN ORDINANCE IMPOSING A LAND TRANSFER
TAX UPON THE TRANSFER OF INTERESTS IN
REAL PROPERTY; EARMARKING THE PROCEEDS
THEREFROM FOR THE PURCHASE OF REAL
PROPERTY TO BE USED FOR OPEN SPACE,
RECREATIONAL OR PARK PURPOSES, RE-
QUIRING THE COLLECTION OF SUCH TAX
BY THE TOWN MANAGER OR HIS AGENTS;
AUTHORIZING THE TOWN MANAGER TO
ENTER INTO AN INTER-GOVERNMENTAL
CONTRACT WITH EAGLE COUNTY FOR THE
COLLECTION OF THE TAX IMPOSED; EX-
EMPTING CERTAIN TRANSACTIONS FROM
THE TAX IMPOSED; ESTABLISHING PRO-
CEDURES FOR ACQUIRING A CERTIFICATE
OF EXEMPTION; ESTABLISHING PENALTIES
FOR VIOLATIONS OF THIS ORDINANCE;
CREATION OF A LIEN OF THE PROPERTY
TRANSFERRED FOR THE AMOUNT OF THE
TAX UNPAID; AND SETTING FORTH DETAILS
IN RELATION TO THE FOREGOING.
WHEREAS, the Town Council is of the opinion that there
are certain properties within and without the Town of Vail
that should be acquired by the Town for use as one or more
of the following public purposes;
(a) Parks,
(b) Recreation,
(c) Open space to be preserved in it natural state,
(d) Similar uses; and,
WHEREAS, the Town Council is of the opinion that the
owners and future owners of real property within the Town
will benefit from the acquisition of property for parks,
recreation, open space, and similar uses; and
WHEREAS, the Town Council is of the opinion that the
citizens of the Town of Vail will be benefited by the parks,
recreational, and open space, located both within and without
the Town of Vail that may be acquired and by the preservation
of the quality and character of the Town; and
WHEREAS, funds necessary for the purchase of such pro-
perties may be realized by the imposition of a land transfer
tax; and
Ordinance No. 26 Page 2
WHEREAS, the Town Council wishes to impose a land
transfer tax on transfers of real property within the Town
of Vail and to provide for the earmarking of the proceeds
therefrom for the purchase of real property, and it is the
intention of the Town Council that at such time as sufficient
parcels of property have been acquired, that portion of the
tax shall cease.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF
THE TOWN OF VAIL, COLORADO, THAT:
Section 1. Imposition of Tax. There is hereby imposed
a tax on all transfers by deeds, instruments, writings,
certain leases, or any other documents by which any lands,
tenements or other interests in real property located in the
Town of Vail are sold, granted, assigned, transferred or other-
wise conveyed to or vested in a purchaser, or purchasers there-
of, or any other person or persons, except as may be specif ically
exempted by Section 5 of this ordinance. Said tax shall be due
and payable at the time of transfer and contemporaneously there-
with.
Section 2. Persons Liable for Tax. Any seller, or sellers,
or person or persons who make a transfer which is subject to
the tax imposed under Section 1 above, shall be liable for
payment of the tax.
Section 3. Definitions.
a. Consideration. "Consideration" means and includes
actual cash paid and/or value of the property delivered, or
contracted to be paid or delivered, in return for the transfer
of ownership or title to real property and shall include the
amount of any lien, mortgage, contract indebtedness, or other
encumbrance, either given to secure the purchase price, or any
part thereof, or remaining unpaid on the property at the time
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' Ordinance No. 26 Page 3
of the sale. The term does not include the amount of any
outstanding lien or encumbrance in favor of the United
States, the State of Colorado, or of a municipal or quasi-
government corporation or district for taxes, special
benefits or improvements. In the event the transaction
or transfer is by lease agreement not specifically exempted
in Sections, the consideration shall be based upon the
capitalization at 10~ of the average annual rental over the
entire term of the lease, including any renewal term, plus
the actual consideration, other than rent, paid ar to be paid.
When the average annual rental cannot be determined, or at the
election of the Town Manager, the tax shall be based upon
the assessed value of the property covered by the lease.
b. Person. "Person" means any individual, corporation,
business trust, estate, trust, partnership, association or
any other legal entity.
c. Transfer. "Transfer" means and included any grant
or conveyance of the ownership of a title to real property
that is evidenced by any deed, conveyance, instrument or
writing wherein or whereby title to real property situated
in the Town of Vail is granted or conveyed, or the conveyance
of a possessory interest and all other indicia of ownership
without the passing of legal title, subject to the exclusions
provided in this ordinance.
d. Real Property. "Real Property" shall be deemed to
mean real property as defined by and under the laws of the
State of Colorado.
Section 4. Amount of Tax. The amount of tax payable in
each case shall be as follows:
a. Where there is no consideration or when the consi-
deration is Five Hundred Dollars ($500.00) or less, no land
~I ~ • •
Odinance No. 26 Page 4
Transfer Tax shall be payable.
b. Where the consideration shall exceed Five Hundred
Dollars ($500.00), the land Transfer Tax payable shall be
i. One percent (lg) of the consideration which
shall be earmarked for acquisition of real property located
either within or without the limits of the Town of Vail;
Section 5. Exemptions. The Land Transfer Tax imposed
by this ordinance shall not apply to:
a. Any document wherein the United States, or any
agency or instrumentality thereof, the State of Colorado,
any county, city and county, municipality, district or other
political subdivision of this State, is either the grantor
or grantee.
b. Any document granting or conveying title to real
property in consequence of a gift or such property, where no
consideration other than love and affection or charitable
donation is evidenced by the terms of the instrument of transfer.
c. Any document, decree or agreement partitioning,
terminating or evidencing termination of a joint tenancy in
real property except where additional consideration of value
is paid in connection with such partition or termination.
d. The transfer of title or change of interest in real
property by reason of death, will or decree of distribution.
e. Transfers made pursuant to business organization,
reorganization, or restructuring including but not limited
to mergers or consolidations of corporations, or by a sub-
sidiary to a parent corporation for no consideration other
than cancellation or surrender of the subsidiary's stock.
f. Transfers to make effective any plan confirmed or
ordered by a court of competent jurisdiction under the
Bankruptcy Act or in an equity receivership proceeding.
' Ordinance No. 26 Page 5
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g. Any deed or conveyance made and delivered without
consideration for the purpose of confirming, correcting,
modifying or supplementing a transfer previously recorded;
making minor boundary adjustments; removing clouds of titles;
or granting easement, rights-of-way or licenses.
h. Any decree or order of a court of record quieting,
determining or resting title, including a final order
awarding title pursuant to a condemnation proceeding.
i. Any deed granting or conveying title to cemetery
lots.
j. Any lease of any real property (or assignment or
transfer of any interest in any such lease) provided the terms
and conditions or such lease do constitute a de facto conveyance
of the subject property.
k. Any mineral deed or royalty deed.
1. Transfers to secure a debt or other obligation,
or transfer of releases of property which is security for a
debt or other obligation.
m. Any executory contract for the sale of real property,
of less than three years' duration, under which the vendee
is entitled to or does take possession thereof without acquiring
title thereto, or any assignment or cancellation of any such
contract.
n. Any deed or conveyance under execution sale, or
foreclosure sale under a power sale or court decree of lien
foreclosure, sheriff's deed, public trustee deed or treasurer's
deed.
o. Any deed or conveyance that is made pursuant to
a valid and legally enforceable contract for sale entered into
between the seller and purchaser prior to the effective date of
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Ordinance No. 26 Page 6
this ordinance and the transaction closed and the deed
or instrument of conveyance executed on or before June 1, 1980.
p. Any deed or conveyance that is made pursuant to
a valid and legally enforceable pre-sale contract (a)
entered into between Seller and Purchaser prior to the
effective date of this ordinance; and (b) the trans-
action is closed and the deed or instrument of conveyance
is executed on or before June 1, 1980,
A "Pre-Sale Agreement"
is defined as a valid and legally enforceable contract
for the sale of "Real Property" upon which has been
signed prior to the commencement of construction of the
improvements, to be closed following completion of the
improvements and Seller is obligated to construct thhe
improvements to the property after the agreement is signed
and prior to the closing date of the sale.
q. Any sale or conveyance of real property or im-
movements for the purpose of constructing, or providing
low or moderate priced housing units for sale or lease
to low or moderate income persons. Provided, that the
parties to the transaction shall apply to the Town Manager
for the exemption prior to its being allowed, and the
parties shall agree to appropriately restrict the future
use of the property to low and moderate priced housing
units by recorded agreement, deed restriction, covenants,
declarations, or similar instrument as may be required by
the Town Manager.
Section 6. Application for Exemption.
a. In the event any document which is exempt from
the Land Transfer Tax herein imposed does not contain
language clearly showing its exempt character, the grantor
or grantee may apply for and obtain from the Town Manager
a Certificate of Exemption, which may be affixed to such
deed or instrument or transfer. Provided further, that the
Ordinance i1o. 26 Page
exemption provided in paragraph 5 (q) shall be allowed
only with a Certificate of Exemption by the Town Manager.
The Certificate of Exemption shall be in substantially
the following form.
' Ord. No. 26 Page 8
EXEMPTION FROM LAND TRANSFER TAX
The undersigned, as grantor(grantee) of a deed
or instrument of conveyance from
to
(name of grantor and grantee), dated
hereby apply for exemption from the
payment of the Land Transfer Tax, imposed by Ordinance
No. Series of 1979, of the Town of Vail. The
basis of such exemption is as follows:
(State briefly grounds for exemp-
tion, including applicable section
and subdivision of Ordinance No. )
I hereby certify under penalty of perjury th~.t the foregoing
statements are true and correct.
Grantor or Grantee
Certificate of Exemption
I hereby certity that the above described transfer
of real property is exempt from the payment of Realty Transfer
Tax under Ordinance No. Series of 1979, Section
Town Manager
b. Any person whose claim of exemption duly applied
for under the provisions of this section is denied by the Town
Manager may immediately appeal to the Town Council for a deter-
mination of such exemption and such appeal shall be considered
by the Town Council within 30 days of receipt of the same. In
the event of a determination by the Town Council favorable to
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' Ord. No. ~ti Page 9
the appellant, any amount previously deposited, or so much
thereof as may be allowed by the Town Manager, shall be promptly
refunded to the person paying or depositing the same. If a
decision is not made by the Town Council within 30 days of
the receipt thereof, the decision will be deemed favorable to
the appellant.
Section 7. Lands Affected. When a document subject
to the ordinance includes property located within the Town of
Vail and property located within another city or in Eagle County
or other counties, the tax imposed under the authority of this
ordinance shall be computed only with respect to property
located within the Town of Vail, and the tax shall be assessed
on that part of the consideration fairly attributable to the
part of such property located within the Town of Vail.
Section 8. Town Manager to Enforce.
a. The Town Manager of the Town of Vail is charged
with the enforcement of the provisions of this ordinance and
is hereby authorized and empowered to prescribe, adopt and
promulgate and enforce rules and regulations pertaining thereto.
b. At the time of any transfer upon which a tax is
imposed by this ordinance there shall be made a report to the
Town Manager on forms prescribed by him, setting forth the true,
complete and actual consideration for the transfer, the names
of the parties thereto, the location of the real estate trans-
ferred, and such other information as he may require.
c. For the purpose of collection of the taxes imposed
by this ordinance, all banks, title companies, escrow companies,
building and loan institutions, attorneys, real estate agencies,
or other closing agents or agencies, permitted as such to do
business under the laws of the State of Colorado may collect
the Land Transfer Tax and remit the same to the Town for and on
behalf of the seller and buyer.
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' Ord. No. 26
Page ld
d. The Town Manager is hereby authorized to negotiate
and enter into an intergovernmental contract with appropriate
officers of Eagle County for the collection fo this tax,
including the payment of a fee to the County officers for
said collection.
Section 9. Application of Funds
a. All funds received by the Town of Vail pursuant
to this ordinance shall be deposited in the Land Transfer
Tax Fund, which fund is hereby created. The Fund shall be
subject to appropriation only for the following purposes:
i. Acquiring land for parks, recreation, open
space and/or similar purposes;
Section 10. Due Dates, Delinquencies, Penalties, Interest.
a. The tax imposed under this ordinance is due and
payable at the time the deed, instrument or writing effecting
a transfer subject to the tax is delivered, and is delinquent
if unpaid within thirty days thereafter. In the event that
the tax is not paid prior to becoming delinquent, a delinquency
penalty of ten percent (10~) of the amount of tax due shall
accrue. In the event a portion of the tax is unpaid prior
to becoming delinquent, the penalty shall only accrue as to
the portion remaining unpaid. Interest shall accrue at the
rate of l~ percent (1.5~) per month, or fraction thereof, on
the amount of tax, exclusive of penalties, from the date the
tax becomes delinquent to the date of payment. Interest and
penalty accrued shall become part of the tax.
b. No deed, instrument of conveyance or document shall
be filed of record in the office of the Eagle County Clerk
and Recorder or attempt made to so record the document until
and unless the real estate transfer tax and all penalties and
and interest thereon has been paid in full.
' ~ ~'
Ord. No. 26 Page 11
Section 11. Lien.
a. The amount of the Land Transfer Tax imposed by
this ordinance, and penalty and interest due thereon, is
hereby assessed against the property transferred, and if not
paid when due, such tax penalty and interest, if any, shall
constitute a lien on the property for the amount thereof, which
lien shall continue until the amount thereof is paid or until
its discharge of record by foreclosure or otherwise.
b. If the tax is unpaid and delinquent, the Town
Manager shall give written notification to the buyer at the
address shown on the deed or instrument, or his last known
address, and the seller at his last known address, of said
delinquency. Said notification shall be mailed certified or
registered mail, postage prepaid, return receipt requested,
and shall be effective on the date of mailing. If the tax,
penalty and interest are not paid within thirty days of the
effective date of the notification, the Town Manager shall
mark the same delinquent on the Town's tax roll and shall,
at least once each calendar year, but not sooner than the first
day of December, certify such delinquencies, along with the
interest and penalty, to the Treasurer of Eagle County, Colorado;
and the County Treasurer shall extend such delinquencies upon
the real property tax rolls of the County and collect the same
in the same manner as delinquent general taxes levied upon
such property. Upon certification of the delinquent taxes,
the penalties and interest thereon shall also become due and
payable.
c. The amount of the tax, penalty and interest imposed
under the provisions of this ordinance shall be deemed a debt
to the Town. Any person owing money to the Town under the pro-
visions of this ordinance shall be liable to an action brought
in the name of the Town for the recovery of such amount.
Ord. No. 26
Page 12
d. Any person who shall fail or refuse to pay any
tax due hereunder may be punished by a fine not exceeding
Three Hundred Dollars ($300.00) or imprisonment for a period
of not more than ninety (90) days, or both such fine and im-
prisonment.
e. Any remedies provided for herein shall be cumulative
and not exclusive and shall be in addition to any other
remedies provided by law.
Section 12. Review. The Town Manager shall prepare
a report of the receipts from the Land Transfer Tax, expendi-
tures made in the proceeding fiscal year, real properties pur-
chased or in the process of being purchased, a list of proper-
ties to be purchased and the priorities of purchase (provided,
however, the list of properties to be purchased and the priori-
ties thereof shall be confidential to the Town Council), and the
projected revenue and expenditures for the next fiscal year.
Such report shall be submitted to the Council two weeks prior
to the submission of the budget as required by Section 9.3 of
the Charter of the Town of Vail.
Section 13. Severability. If any provision, clause,
phrase or section of this ordinance or the application thereof
to any person or circumstances is held invalid, such invalidity
shall not affect other provisions, clauses, phrases or sections
or applications of the ordinance which can be given effect
without the invalid provisions or applications and to this end
the provisions or applications of this ordinance are declared
to be severable.
INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED
PUBLISHED ONCE IN FULL, this ~ day of ~lt L~/ , 1979.
A public hearing shall be held hereon on the ( ~ day of
Ji,c L 1/ 1979, at the regular meeting of the Town
Council of the Town of Vail, Colorado, in the Municipal Building
of the Town.
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INTRODUCED, READ, ADOPTED AND ENACTED ON SECOND READING
AND ORDERED PUBLISHED '~'' ~ ~ ~ ~ J ~ ~ /~
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