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HomeMy WebLinkAboutordinance.council.021A-74RECORD OF PROCEEDINGS 100 Leaves ORDINANCE NO. 21 (Series of 1974) AN ORDINANCE IMPOSING A LAND TRANSFER TAX UPON THE TRANSFER OF INTERESTS IN REAL PROPERTY; REQUIRING THE COLLECTION OF SUCH TAX BY THE DIRECTOR OF FINANCE OR HIS AGENTS; EXEMPTING CERTAIN TRANSACTIONS FROM THE TAX IMPOSED AND ESTABLISHING PROCEDURES FOR ACQUIRING A CERTIFICATE OF EXEMPTION; PROVIDING FOR THE APPLICATION OF FUNDS TO LIMITED USES; ESTABLISHING PENALTIES FOR VIOLATIONS OF THIS ORDINANCE AND FOR THE CREATION OF A LIEN OF THE PROPERTY TRANSFERRED FOR THE AMOUNT OF THE TAX UNPAID, AND MAKING THIS ORDINANCE EFFECTIVE ON APPROVAL OF THE SAME BY THE ELECTORATE WHEREAS, the Aspen City Council wishes to impose a land transfer tax on those transfers of real property within the city of Aspen and to provide for the application of the funds collected by the reason of the taxes, and WHEREAS, such a tax must be ratified and approved by the electorate prior to its enforcement all as required by Section 12.1 of the Charter of the City of Aspen, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 Land Transfer Tax Imposed There is hereby imposed a Land Transfer Tax on every document in writing, wherein or whereby title to real property situated in the City of Aspen is transferred, which tax shall be measured by the consideration paid or to be paid for such grant or conveyance and shall be due and payable at the time of transfer and contemporaneously therewith. RECORD OF PROCEEDINGS 100 Leaves Section 2 Definitions For the purposes are defined as follows: (a) of this ordinance certain words Document. "Document" means and includes any deed, instrument or writing by which real property located 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 exclusions provided in this ordinance. (c) Real Property. "Real Property" means and includes all lands or interests in lands within the City of Aspen to which title or the right to title has been acquired from or ratified by the govern- ment of the United States or the State of colorado. (d) 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 - 2 - RECORD OF PROCEEDINGS 100 Leaves Section 3, The be as follows: (a) 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 corporation or district for taxes, special benefits or improvements. Amount of Tax amount of tax payable in each case shall (b) Where there is no consideration or when the consideration, inclusive of the amount of any lien or encumbrance against the property granted or conveyed, is Five Hundred Dollars ($500.00) or less, no Land Transfer Tax shall be payable. Where the consideration, inclusive of the amount of any lien or encumbrance against the property granted or conveyed, shall exceed Five Hundred Dollars ($500.00), the Land Transfer Tax payable shall be computed at the rate of one percent (1%) of such consideration. - 3 - RECORD OF PROCEEDINGS 100 Leaves Section 4, 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 tax imposed under the authority of this ordinance shall be computed only with respect to property located within the City of Aspen and the tax shall be assessed on that part of the consideration fairly attributable to the part of such property located within this City. Section 5, Director of Finance to Enforce (a) The Director of Finance of the City of Aspen 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 Director of Finance 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, - 4 - RECORD OF PROCEEDINGS 100 Leaves building and loan institutions and real estate agencies permitted as such to do business under the laws of the State of Colorado and maintaining offices within the City of Aspen may be appointed by the Director of Finance to act as agent of the City of Aspen for the collection of said tax. Section 6, 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 wherein the grantor or grantee corporation, association or trust has been organized~ operated and maintained solely and exclusively for charitable or religious purposes. (c) 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. - 5 - RECORD OF PROCEEDINGS 100 Leaves (d) Any document terminating or evidencing ter- mination 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 consideration of value is paid in connection therewith. (e) The transfer of title or change of interest in real property by reason of death, will or decree of distribution. (f) Transfers made pursuant to mergers or con- solidations of corporations, or by a subsidiary to a parent corporation for no consideration other than cancellation or surrender of the subsidiary's stock. (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 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. - 6 - RECORD OF PROCEEDINGS 100 Leaves (j) (k) (1) (m) (n) Any lease of any real property (or assign- ment or transfer of any interest in any such lease) provided such lease by its terms does not constitute a de facto conveyance of the subject property. In the latter event the Land Transfer Tax 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 or to be paid. ~hen the average annual rental cannot 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. Any mineral deed or royalty deed. Transfers to secure a debt or other obligation, or transfers of release of property which is security for a debt or other obligation. Any executory contract for the sale of real property 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. Any deed or conveyance under execution - 7 - RECORD OF PROCEEDINGS 100 Leaves 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 7, Application for Exemption 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 Director of Finance 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 or 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. 21, Series of 1974, of the City of Aspen. The basis of such exemption is as follows: (State briefly grounds for exemption, including applicable section and subdivision of ordinance No. 21.) I hereby certify under penalty of perjury that the foregoing statements are true and correct. Grantor or Transferor Certificate of Exemption I hereby certify that the above described transfer of real property is exempt from the payment of Realty Transfer Tax under ordinance No. 21, Series of 1974, Section ( )' Director of Finance - 8 - RECORD OF PROCEEDINGS 100 Leaves 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 considered by the City Council at its next regular meeting. In the event of a determination by the City Council favorable to said grantor, any amount previously deposited, or so much thereof as may be allowed by the Council, shall be promptly refunded to said grantor. Section 8, Application of Funds All funds received by the City of Aspen 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 by the City of Aspen only for the purpose of acquiring land for and the planning, development and construction of civic and performing arts centers and governmental buildings. Section 9, Penalties and Liens (a) All taxes imposed by this ordinance, if not paid when due, shall bear interest at the rate of twelve per cent (12%) per annum until so paid. The amount of the Land 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 any, shall constitute a lien on the RECORD OF PROCEEDINGS 100 Leaves 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) Any person who shall fail or refuse to pay any tax due hereunder shall be punished by a fine of not exceeding Three Hundred ($300) Dollars 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 and not exclusive and shall be in addition to any other remedies provided by law. Section 10, Effective Date The provisions of this ordinance shall be effective only on and at the time of approval of the imposition of this excise tax by the electorate pursuant to the requirements of Section 12.1 of the Charter of the City of Aspen, Colorado. Section 11, Severability If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions 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, Public Hearing A public hearing on this ordinance shall be held on the ~ day offS.. _ , 1974, at _~..~ P.M., in the /~%y C~ncil Cha/nbers, City Hall - 10 RECORD OF PROCEEDINGS 100 Leaves Building, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen, Colorado, at its regular meeting held in Aspen, colorado, on ATTEST: ~/'City Clerk READ, APPROVED AND FINALLY ADOPTED on this //~-~ day of ~ c~. ~ City Council. , ~974, by the A~p~ Stacy/~% ey, May. ATTEST: ~ " , f/ 11 -