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HomeMy WebLinkAboutordinance.council.048-83 RECORD OF PROCEEDINGS 1~0 Leaves ORDINANCE NO. /~ (Series of 1983) AN ORDINANCE AMENDING ORDINANCE NO. 20 (SERIES OF 1979) )ING THE IMPOSITION OF A REAL ESTATE TRANSFER TAX UPON THE OF INTERESTS IN REAL PROPERTY, PAYABLE BY THE GRANTEE~ SO AS TO INCREASE THE AMOUNT OF REAL ESTATE TRANSFER TAX FROM THE RATE OF ONE-HALF OF ONE PERCENT (]/2 of 1%) OF THE CONSIDERATION PAID IN RETURN FOR THE TRANSFER OF OWNERSHIP OR TITLE TO THE RATE OF PERCENT (1%), TO DELETE THE LAST SENTENCE OF SECTION 8(a) OF ORDINANCE NO. 20 (SERIES OF 1979) WHICH PROVIDES THAT THE COUNCIL CANNOT APPROPRIATE REAL ESTATE TRANSFER TAX FUNDS IN EXCESS OF $100,000 IN ANY SINGLE YEAR FOR THE PURPOSE OF ING THE VISUAL AND PERFORMING ARTS WITHOUT OBTAINING THE OF SIXTY PERCENT (60%) OF THE ELECTORS AT A REGULAR OR SPECIAL ELECTION, AND TO CODIFY THE AFORESAID ORDINANCE, INCLUDING THE IMPOSITION OF PENALTIES FOR THE VIOLATION THEREOF, AS AMENDED HEREBYt AS ARTICLE VI, CHAPTER 21 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT ON JANUARY 1, 1984, ONLY UPON APPROVAL OF THE SAME BY THE ATE PRIOR TO SAID EFFECTIVE DATE WHEREAS, the City of Aspen is engaged in an on-going progr. for the extensive renovation and reconstruction of the historic Wheeler Opera House; and WHEREAS, pursuant to Ordinance No. 20 (Series of 1979), .wit the appro~ of the electorate, the City Council did impose a ~1 estate transfer tax upon the transfer of interests in real pro- perty computed at the rate of one half of one percent (1/2 of 1% of the consideration paid in return for the transfer of ownershi or title of said real property interests, for the purpose of obtaining sufficient funds to renovate, reconstruct and maintain the Wheeler Opera House and also to provide for the maintenance o the Wheeler Opera House and, subordinate thereto, to provide for the support of the visual and performing arts; and WHEREAS, the City Council for the City of Aspen, having determined that the tax revenues collected at the rate of one-hal of one percent (I/2 of 1%) are inadequate to complete and the Wheeler Opera House and support the visual and performing arts, desires to amend the provisions of Ordinance No. 20 (Series of 1979) so as to increase the amount of tax to the rate of one RECORD OF PROCEEDINGS 100 Leaves percent (1%) of the consideration paid in return for the transfer of ownership or title; and WHEREAS, the City Council desires to also amend Ordinance No. 20 (Series of 1979) by deleting the last sentence of Section ia), pertaining to the appropriation of Real Estate Transfer Tax , which provides: "However, the City Council cannot appropriate in excess of $100,000 in any single calendar year for the purpose of supporting the visual and performing arts without obtaining t]e approval of sixty percent (60%) of the electors voting at a ~gu- lar or special election on the same." WHEREAS, in accordance with Section 12.1 of the Charter the City of Aspen, the City Council desires that this ordinance only take effect as of January 1, 1984, if this ordinance and the increase of tax rate set forth herein is ratified and by the electorate prior to said date; and WHEREAS, in amending the aforesaid Ordinance No. 20 ( es of 1979) the City Council desires to codify the same as a Article VI of Chapter 21 of the Municipal Code of the City o~ Aspen as set forth in this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF E CITY OF ASPEN, COLORADO: Section 1 That Ordinance No. 20 (Series of 1979) be and the same s hereby amended by increasing the amount of real estate transfer tax payable to the rate of one percent (1%) of the considera;lon paid in return for the transfer of ownership or title, amendLng Ordinance No. 20 (Series of 1979) by deleting the last %ce of Section 8(a), and codifying said Ordinance, as amended herek f, as a new Article VI, Chapter 21 of the Municipal Code of the C~ty of Aspen, Colorado, to read as follows: 2 RECORD OF PROCEEDINGS 1110 Leaves "ARTICLE VI. REAL ESTATE TRANSFER TAX. Sec. 21-111 - 21-119. Reserved. Sec. 21-120. Real Estate Transfer Tax (RETT). There is hereby imposed a Real Estate Transfer Tax on ev.~ry document in writing, wherein or whereby title to real pr~- perty situated in the City of Aspen is transferred, whid tax shall be measured by the consideration paid or to be pal~ for such grant or conveyance and shall be due and payable by the grantee at the time of transfer and contemporaneously th~re- with. No document shall be recorded whereby or wherein ;itle to real property situated in the City of Aspen is transferred until the real estate tax has been paid. Sec. 21-121. Definitions. For the purposes of this ordinance certain words are defined as follows: (a) Document. "Document" means and includes any deed, instrument or writing by which real property locate( within the City of Aspen is transferred. (b) Transfer. "Transfer" means and includes any conveyance of the ownership of a title to real property and is evidenced by any deed or instrument or writing wherein or whereby title to real property situated in the City of Aspen is granted or conveyed, subject to the exclu- sions provided in this ordinance. "Conveyance of owner- ship" for the purpose of this ordinance means and includes the transfer of more than fifty percent of the authorized and issued shares of a corporation which ilas as its principal asset real property situated in the City of Aspen. (c) Real Property. "Real property" means and includes a.1 lands or interests in land within the City of Aspen ;o which title or the right to title has been acquired ~rom or ratified by the government of the United States o~ the State of Colorado. (d) Consideration. "Consideration" means and includes t e actual cash paid and/or value of the property delivezed, 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-municipal corporation or district for taxes, special benefits improvements. Sec. 21-122. Amount of Tax. The amount of the Real Estate Transfer Tax payable shall computed at the rate of one percent (1%) of the considerat on paid in return for the transfer of ownership or title. 3 RECORD OF PROCEEDINGS Leaves Sec. 21-123. Lands Affected. When a document subject to the ordinance includes property located within the City of Aspen and property located within another city or in Pitkin County or other counties, the ta imposed under the authority of this ordinance shall be com puted only with respect to property located within the Cit of Aspen and the tax shall be assessed on that part of the consideration fairly attributable to the part of such pro- perty located within this City. Sec. 21-124. Director of Finance to Enforce. (a) The Director of Finance of the City of Aspen is charg(d with the enforcement of the provisions of this ordinarce and is hereby authorized and empowered to prescribe, adopt and promulgate and enforce the rules and re( tions pertaining thereto. (b) At the time of any transfer upon which a tax is impose by this ordinance there shall be made a report to the Director of Finance on forms prescribed by him, 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 oths information as he may require. (c) For the purpose of collection of the taxes imposed by this ordinance, the Office of the Pitkin County Clerk and Recorder, together with all banks, title companies escrow companies, buildings and loan institutions and real estate agencies permitted as such to do business under the laws of the State of Colorado and maintainin. offices within the City of Aspen for the collection of said tax. The Director of Finance is authorized to negotiate with such appointed agents to allow them to retain a reasonable amount of the sum collected to coy r their expense in the collection and remittance of said tax. Sec. 21-125. Exemptions. The Real Estate Transfer Tax imposed by this ordinance shal~ not apply to: (a) Any document wherein the United States, or any agency instrumentality thereof, the State of Colorado, any County, City and County, Municipality, District or oth political subdivision of this State, is either the grantor or grantee. (b) Any document wherein the grantee corporation, associa- tion or trust has been organized, operated and main- tained solely and exclusively for charitable or relig- ious purposes. (c) Any document granting or conveying title to real pro- perty in consequence of a gift of such property, where no consideration other than love and affection, chari- table donation or nominal compensation is evidenced by the terms of the instrument of transfer. 4 RECORD OF PROCEEDINGS 100 Leaves (d) Any document terminating or evidencing termination of a joint tenancy in real property except where additional consideration of value is paid in connection with such termination, or a decree or agreement partitioning real property held under common ownership unless a considera- tion of value is paid in connection therewith. (e) The transfer of title or change of interest in real pro- perty by reason of death, will or decree of distribu- tion. (f) Transfers made pursuant to mergers or consolidations of corporations, or by a subsidiary to a parent corporation for no consideration other than cancellation or surren- der of the subsidiary's stock. (g) Any deed or conveyance made and delivered without con- sideration for the purpose of confirming, correcting, modifying, or supplementing a transfer previously recorded; making minor boundary adjustments, removing clouds on titles; or granting easements, rights-of-way or licenses. (h) Any decree or order of a court of record 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 trans- fer of any interest in any such lease) provided such lease by its terms does not constitute a de facto con- veyance of the subject property. In the latter event the Real Estate Transfer Tax shall be based upon the capitalization at 5% of the average annual rental over the entire term of the lease, including any renewal term, plus the actual consideration, other than rent, paid or to be paid. When the average annual rental can- not be determined, or at the election of the Director of Finance, the tax shall be based upon the assessed value of the property covered by the lease. (k) Any mineral deed or royalty deed. (1) Transfers to secure a debt or other obligation, or transfers or release of property which is security for a debt or other obligation. (m) Any executory contract for the sale of real property under which the vendee is entitled to or does take pos- session thereof without acquiring title thereto, or any assignment or cancellation of any such contract. (n) Any deed or conveyance under execution, sale, or fo:e- closure sale under a power sale or court decree of lien foreclosure; sheriff's deed; public trustee deed or treasurer's deed. 5 RECORD OF PROCEEDINGS 10( Leaves Sec. 21-126. Application for Exemption. In the event any document which is exempt from the Real Estate Transfer Tax herein imposed does not contain langu~ clearly showing its exempt character, the grantor or grant may apply for and obtain from the Director of Finance a Certificate of Exemption, which may be affixed to such dee or instrument of transfer. The Certificate of Exemption shall be in substantially the following form: EXEMPTION FROM REAL ESTATE TRANSFER TAX STATE OF ) County of ) ss. The undersigned, as grantor or grantee of a deed or instru ment of conveyance from (grantor to (grantee) dated transferring the following described property situate in State of Colorado, County of Pitkin, and City of Aspen: hereby does apply for an exemption from the payment of the Real Estate Transfer Tax imposed by Ordinance No. , Series of 1979, of the City of Aspen. The basis of such exemption is as follows: (State briefly the grounds for exemption, including applic- able section and subdivision of Ordinance No. ) (Signature) Subscribed and sworn to before me this day of , 19 (Signature) Notary Public My commission expires: CERTIFICATE OF EXEMPTION I hereby certify that the above-described transfer of real propery is exempt from the payment of a Real Estate Transfer Tax under Ordinance No. , Series of 1979, Section ( ). (Signature) Any person whose claim of exemption duly applied for under the provisions of this section is denied by the Director of Finance may immediately appeal to the City Council for a determination of such exemption and such appeal shall be con. sidered by the City Council at its next regular meeting. In the event of a determination by the City Council favorable said grantor, any amount previously deposited, or so much thereof as may be allowed by the Council, shall be promptly refunded to said grantor. RECORD OF PROCEEDINGS 100 Leaves Sec. 21-127. Application of Funds. (a) Ail funds received by the City of Aspen pursuant to his ordinance shall be deposited in the Real Estate Transfer Tax fund, which fund is hereby created. The fund shall be subject to appropriation by the Cit Council of the City of Aspen only for the purpose of renovation, reconstruction and maintenance of the Wheeler Opera House or for the payment of principal interest on bonds issued for such purposes and for th( purpose of supporting the visual and performing arts. (b) The City Council, pursuant to ordinance, and without s election, may borrow money, issue bonds, or otherwise extend the credit of the City for renovation and retch struction of the Wheeler Opera House provided that the bonds or other obligations shall be made payable from the funds derived from this ordinance. Sec. 21-128. Penalties and Liens. (a) All taxes imposed by this ordinance, if not paid when due, shall bear interest at the rate of eighteen percert (18%) per annum until so paid. The amount of the Real Estate Transfer Tax imposed by this ordinance, and interest due thereon, is hereby assessed against the property upon the transfer of which the tax is imposed, and if not paid when due, such tax and interest, if an 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 or record by foreclosure or otherwise. (b) Any person who shall fail or refuse to pay any tax due hereunder shall 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. (c) Any remedies provided for herein shall be cumulative not exclusive and shall be in addition to any other remedies provided by law. Sec. 21-129. Duration of Ordinance. This ordinance shall continue effective insofar as the levy of Real Estate Transfer Tax is concerned through December 31, 1999; and insofar as the collection of the tax levied in the aforesaid period and actions or proceedings for collecting any tax so levied, including interest and penalties thereon, and enforcing any of the provisions of this ordinance are concerned, this ordinance shall continue effective until all of said taxes levied in the aforesaid period are fully paid and any and all suits and prosecutions for the collection of said taxes and for the punishment of violation of this ordinance shall have been fully terminated. Sec. 21-130. Provisions Irrepealable or Unamendable. After the approval of the electorate for the imposition of this excise tax, Sections 3 and 8(a) providing for the amount of the tax and the application of funds shall be and remain 7 RECORD OF PROCEEDINGS 10~ Leaves irrepealable and unamendable without the approval of the electorate for the repeal or amendment pursuant to the requirements of Section 12.1 of the Charter of the City of Aspen, Colorado." Section 2 This ordinance shall be effective on the 1st day of January, 1984, provided that before said effective date the electorate approves this ordinance and the increase in the rate of tax set forth herein in accordance with the requirements of Section 12.1 of the Charter of the City of Aspen, Colorado, and Section 12 of Ordinance No. 20 (Series of 1979). Section 3 All of the provisions of Ordinance No. 20 (Series of 1979) shall remain in full force and effect to the extent not incon- sistent with the provisions of this ordinance. Section 4 If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 5 A public hearing on the ordinance shall be held on the day of , 1983, at 5:00 P.M. in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED published as provided by law by the City Council of the City of Aspen on the day of , 1983. William L. RECORD OF PROCEEDINGS 100 Leaves ATTEST: , City Clerk ~ FINALLY adopted, passed and approved this day of , 1983. William L. Stir:ing~~, M or ATTE~ :. athryn S.~och, City Clerk 9 RECORD OF PROCEEDINGS 10(] Leaves STATE OF COLORADO ) ) SS CERTIFICATE COUNTY OF PITKIN ) I, Kathryn S. Koch, City Clerk of Aspen, Colorado, do hereby certify that the above and foregoing ordinance was introduced, read in full, and passed on ~ reading at a regular meeting of the CityC~ouncil of t' he City of Aspen on ~ ~ , 19 ~, and published in the .AsPen.. Times a weekly newspaper of general circulation published in the City of Aspen, Colorado, in Its issue of j~ , ~/~, was finally adopted 19 and and app~roved at a regular meeting of the City Council on // , 19 ~ ,-and ordered published as Ordinance No. /~ , Series of 19~ , of said City, as provided by law. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of said City of Aspen, Colorado this ./f~/~-~-- day ' ~ '~och, City Clerk SEaL Deputy City Clerk