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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. -2- 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 -3- 6 0 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. -4- 0 f 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, -5- 0 • 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 r ' t•