Housing RETT Monthly Report
Wheeler Opera House RETT Monthly Report
RETT Payment Computation Transmittal Report
RETT Exemption Application

In order to raise revenues for specific projects (Wheeler Opera House - WRETT=0.5%) These taxes are due on the purchase of all real property (land, buildings, condos, townhomes, etc.) within the city limits of Aspen. They are normally paid just before recording the purchase deed at the Pitkin County Clerk and Recorder's Office.

There are two separate RETT's (WRETT= 0.5% and HRETT=1.0%) totaling 1.5%. The first $100,000 of each transaction is exempt from the HRETT. A simplistic way of looking at it is as follows:

1. the first $100,000 of each transaction is taxed at a rate of 0.5%;
2. anything over $100,000 of each transaction is taxed at combined rate of 1.5%.

They can be paid by using the City of Aspen Real Estate Transfer Tax Transmittal Form and submitting that form along with the proper remittance and the original deed to the City of Aspen Cashier or by mail to: Finance Dept., City of Aspen, 130 South Galena Street, Aspen, Colorado 81611.

Our RETT's are assessed against the purchaser. Failure to pay the RETT's will result in the filing of a lien against the purchaser.

Failure to obtain the City's "Paid" or "Exempt" stamps for both RETT's on their deeds prior to recording could result in the purchaser's inability to sell the property with a clear title in the future; if a property located in Aspen is sold without addressing the RETT's (either paying them or obtaining exemptions), the City has the right to file a lien against the property for unpaid taxes due…therefore, when a potential purchaser attempts to obtain title insurance, the title insurance company will find "exception to title" and the prospective purchaser will be unable to obtain a clean, clear title until the exception is addressed…that is, either paid or exempted and the stamps properly affixed by the City.

What is important to the City is that the RETT's be paid timely, or an application for exemption from the RETT's properly filed. What is important to the purchaser of property is that they have obtained either "RETT Paid" or "RETT Exempt" stamps (for both of the WRETT and HRETT) on their deeds prior to recording.

Yes, there are several reasons for exemption from our RETT's (however, these exemptions must be properly applied for, documented, and the "Exempt" stamps applied to the deeds prior to recording).

Real Estate Transfer Tax Exemptions may be applied for by completing the City of Aspen Real Estate Transfer Tax Exemption Application.

Although some real estate transactions may appear to be quite complex involving corporations, LLC's, foreign companies and corporations, trusts, partnerships, etc., usually all transactions can be analyzed in the following means:

1. did the principals (the actual individual people) who own the property change or did the principals change their % of ownership in the property?
2. was consideration (something of value such as money, other property, autos, airplanes, stock, or whatever) given from one principal to another for the property?

If no consideration was exchanged, the sale is exempt from our RETT's.
If the principals did not change their respective % ownership in the property, the sale is exempt.
If consideration was exchanged, the amount of or value of the consideration is the amount on which the RETT's should be calculated.
If the % ownership of any of the owners has changed, the additional % of ownership acquired, multiplied against the current total value of the property, is that amount on which the RETT's should be calculated.

If the principals claim that no consideration exchanged hands but there is no apparent evidence of a "gift relationship" between the buyer and seller (such as husband and wife, brother and sister, father and son, etc), the burden of proof that there is no consideration rests upon the purchaser. The assumption here is that nobody gives property to somebody else for no consideration unless they are related by blood, marriage, etc. OR unless they are willing to use the language in the deed: "for no consideration other than love and affection"; if the principals are hesitant to use this language, the transaction is highly questionable as to it's RETT exempt status.

Yes, under legislation adopted a few years ago, no NEW Real Estate Transfer Taxes may be adopted in Colorado. However, Aspen's RETT's were adopted prior to the passage of that legislation. And, it has been determined by legal counsel that the extension of our existing RETT's does not constitute a violation of this legislation.

The City of Aspen Sales Tax Administrator (970-920-5029), 130 South Galena Street, Aspen, Colorado 81611, e-mail: larryt@ci.aspen.co.us