TC Ord. No. 1978-08s
ORDINANCE NO. 8
SERIES OF 1978
AN ORDINANCE IMPOSING A TAX UPON THE TRANSFER OF INTERESTS IN REAL
PROPERTY;ALLOCATING THE PROCEEDS THEREFROM BETWEEN THE GENERAL FUND
AND THE PUBLIC WORKS FUND; REQUIRING THE COLLECTION OF SUCH TAX BY
THE TOWN CLERK; EXE14PTING CERTAIN TRANSACTIONS FROM THE TAX IMPOSED;
ESTABLISHING PROCEDURES FOR ACQUIRING A CERTIFICATE OF EXEMPTION;
ESTABLISHING PENALTIES FOR VIOLATION OF THIS ORDINANCE; CREATION OF
A LIEN ON THE PROPERTY TRANSFERS FOR THE AMOUNT OF UNPAID TAX; AND
SETTING FORTH DETAILS IN RELATION TO THE FOREGOING.
WHEREAS, the Town Council of the Town of Avon has determined that
the Town is in need of revenue to meet its basic operating costs; and
WHEREAS, the Town Council has determined that a tax on the transfer
of real property within the Town is an equitable and appropriate source
of revenue;
NOW THEREFORE, be it ordained by the Town Council of the Town of
Avon, Colorado, that:
Section 1. Imposition of Tax.There is herebv imposed a tax on all
transfers by deeds, instruments, writings, ground, leases, or any other
document by which any lands, tenements or other interests in real property
located in the Town of Avon are sold, granted, assigned, transferred or
otherwise conveyed to or vested in a purchaser, or purchasers thereof,
or any other person or persons, except as may be specifically exempted
by Section 5 of this Ordinance. Said tax shall be due and payable at the
time of transfer and contemporaneously therewith.
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, and any purchaser or purchasers thereof, or any
other person or persons to whom such a transfer is made shall be jointly
and severally liable for payment of the tax.
14arrt-inn 1_ nafinifinns_
a. Consideration. "Consideration" means and includes the 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 of 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-governmental.:orporation or
district for taxes, special benefits or improvements. In the event
the transaction or transfer is by,ground lease agreement- not specifically
exempted in Section 5, the consideration shall be based upon the
capitalization at 10% of the average annual rental over a.ten year period
or if the term shall be less than 10 years, then for the entire term
of the lease, "plug'-, -the - actual consideratio ,
other than rent, paid or to be paid. When the average annual rental
cannot be determined, or at the election of the Mayor and/or Town Clerk,
the tax shall be based upon the assessed value of the property covered
by the lease.
For the purposes of real property exchanges, "consideration" shall mean me
greater of either actual value, as determined by the County Assessor or the value as agreed
to by the parties to the exchange.
b. Person. "Person" means any individual, corporation, business
trust, estate, trust, partnership, association or any other legal
entity.
c. Transfer. "Transfer" means and includes any grant or
conveyance of the ownership of a title or real property that is
evidenced by any deed, conveyance, or exchange instrunent *or writing'wherein or
whereby title to real property situated in the Town of Avon 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 consideration
is Five Hundred Dollars ($500.00) or less, no Land Transfer Tax
shall be payable.
b. Where the consideration shall exceed Five Hundred Dollars
($500.00), the Land Transfer Tax payable shall be computed at the
rate of one percent (1%) of the consideration unless a lesser rate
is set by ordinance of the Town Council.
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 of such property,where no consideration other than
love and affection, charitable donation or nominal compensation 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 subsidiary to a parent corporation for no con-
sideration 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.
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g. Any deed 0 conveyance made and delivoed 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
of such lease do 'not 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 transfers
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.
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 Mayor and/or Town Clerk a Certificate of Exemption, which
may be affixed to such deed or instrument or transfer. The
Certificate of Exemption shall be in substantially the following
form:
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 ,19 hereby apply for
exemption from the payment of the land Transfer Tax, imposed by Ordinance No. ,
Series of 1978, of the Zbwn of Avon. The basis of such exemption is as follows:
(State briefly grounds for exemption, including applicable
section and subdivision of Ordinance No. )
I hereby certify under penalty of perjury that the foregoing statements
are true and correct.
Grantor or Grantee
Certificate of Exemption
I hereby certify that the above described transfer of real property is exempt
from the payment of Malty Transfer Tax under Ordinance No. Series of 1978,
Section
Mayor and/or Town Clerk
b. Any person whose claim of exemption duly applied for under the
provisions of this section is denied by the Mayor and/or Town Clerk may
immediately appeal to the Town Council for a determination of such exemption
and such appeal shall be considered by the Town Council within 30 days of
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receipt of same. In the event of a determination by the Town Council
favorable to the appellant, any amount previously deposited, or so much
thereof as may be allowed by the Mayor and/or Town Clerk, 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 Avon 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 Avon, 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 Avon.
Section B. Mayor and/or Town Clerk to Enforce.
a. The Mayor and/or Town Clerk of the Town of Avon 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 Mayor and/or Town
Clerk 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 transferred, 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.
Section 9. Due Dates, Delinquencies, Penalties, Interest.
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 one
percent (1%) 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.
Ccr+i-inn in _ T.i an
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.
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b. If the tax is unpaid and delinquent, the Mayor and/or Town
Clerk 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 Mayor and/or Town Clerk
shall mark the same delinquent on the Town's tax roil 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 provisions of this Ordinance
shall be liable to an action brought in the name of the Town for the
recovery of such amount.
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 imprisonment.
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 11. Severability. If any provision, clause, phrase or section
of this Ordinance or the application thereof to any person or circumstance
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.
Section 12. Allocation of Revenue. Commencing with the calendar year
1979, all funds received by the Town pursuant to this Ordinance from the
tax imposed hereby shall be deposited in the General Fund of the Town for
operating costs.
At such time as the Town shall have received a total of $150,000.
from the tax imposed hereby, or January 1,1980; - whichever shall occur first,
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all subsequent revenues frcan this tax shall be divided as follows:
50% of said revenues shall be deposited in the
General Fund of the Town; and 50% of the revenues
from said tax shall be deposited into the Public
Works Fund of the Town for the purpose of capital
improvements, including, but not limited to, and
priorities of ..railroad crossings, bridges and streets.
INTRODUCED, PASSED, READ, APPROVED AND ORDERED PUBLISHED THIS 3rd
DAY OF October , 1978.
TOWN OF AVON
i By :
An elo Alpi, Ma or
ATTEST:
By:
L.E i~ VR~~.s h3~.
Leslie James Allen,Town Clerk
INTRODUCED, PASSED;; READ, ADOPTED AND ORDERED PUBLISHED THIS 10th
DAY OF October , 1978.
TOWN OF AVON
By:
Angelo IV. Al , Mayor
ATTEST:
By: aa1 ~=ft Palke,-
Leslie James Allen,Town Clerk
STATE OF COLORADO )
COUNTY OF EAGLE )ss.
TOWN OF AVON )
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN of a public hearing before the Town
Council of the _ Town of Avon, Colorado, at 7:30 p.m. of the
10th day of October, 197 8, at the Town Hall for the
purpose of considering the adoption of an ordinance- 'AN ORDINANCE IM-
POSING A TAX UPON THE TRANSFER OF INTERESTS IN REAL PROPERTY; ALLOCATING
THE PROCEEDS THEREFROM BETWEEN THE GENERAL FUND AND THE PUBLIC WORKS FUND;
REQUIRING THE COLLECTION OF SUCH TAX BY THE TOWN CLERK; EXEMPTING CERTAIN
TRANSACTIONS FROM THE TAX IMPOSED; ESTABLISHING PROCEDURES FOR ACQUIRING
A CERTIFICATE OF EXEMPTION; ESTABLISHING PENALTIES FOR VIOLATION-OF THIS
ORDINANCE;CREATION OF A LIEN ON THE PROPERTY TRANSFERS FOR THE AMOUNT OF
UNPAID TAX; AND SETTING FORTH DETAILS IN RELATION TO THE FOREGOINO.
A copy of said Ordinance is attached hereto and is also on file
at the office of the Town Clerk and may be inspected during regular
business hours.
Following this hearing, the Council may consider final passage
of this Ordinance.
This meeting is open to the general public.
This notice given and -published -by -order of-the Town Council
of the Town of Avon.
Dated this 4th day of October ,197 8.
TOWN OF AVON, COLORADO.
By order of the Town Council
By: Lf 4j, Aug
Town Clerk
Posted at the following public places within the Town of Avon on
October 4,1978, at:
The Northeast side of the Benchmark Shopping
Center (Avon Post Office)
The main entrance Eagle Valley Bowl
The Pester Gas Station; and
The Town Office, Second Floor, Benchmark Shopping
Center
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