Your Guide to the Town of Winter Park Real Estate Transfer Tax

Nestled in the heart of the Rocky Mountains with ideal proximity to Denver, Winter Park offers a perfect blend of natural beauty, small-town charm, and year-round opportunities to play outside. Minutes from world-class skiing at Winter Park Resort with out-the-door access to hiking, biking, and cross-country ski trails as well as shops, restaurants, and events on Winter Park's Main Street, homes in the Town of Winter Park are at the top of many prospective buyers' dream properties. And they're the most sought-after in the short-term rental market, meaning investment in Winter Park real estate has strong income potential.

If you're hoping to realize your dream of mountain living in Winter Park or considering selling your Winter Park property, it's important to have a local realtor on your side who can keep you informed every step of the way. Our in-depth knowledge of special tax districts, local HOA rules and regulations, town and county regulations, and water district ins and outs comes from years of experience working in our local market. We streamline the process and ensure you have all the information you need well in advance, avoiding surprises and preparing you for all closing costs - including the Town of Winter Park real estate transfer tax. 

WHAT IS WINTER PARK'S TRANSFER TAX?

A real estate transfer tax is levied on a transaction that transfers property ownership from one person or entity to another. The state of Colorado doesn’t actually collect a “transfer tax” due to the Taxpayer Bill of Rights (TABOR) passed 30 years ago, prohibiting the creation of any new transfer taxes. At the state level, lawmakers created a “documentary fee” as a workaround, though it functionally serves the same purpose as a transfer tax. In Colorado, the statewide documentary fee is levied at a rate of one cent for every $100 of the property’s sale price.

In addition to the Colorado document fee, closing costs for real estate transactions in the Town of Winter Park also include a transfer tax. The Town of Winter Park is one of 12 Colorado communities that collect a real estate transfer tax. Aspen, Avon, Breckenridge, Crested Butte, Frisco, Gypsum, Minturn, Ophir, Snowmass Village, Telluride, Vail, and Winter Park all levy transfer taxes that were already in place in when TABOR was passed,  so they were “grandfathered in.” 

While some Colorado real estate transfer taxes are as high as 4%, Winter Park collects a 1% Real Estate Transfer Tax (RETT) on the transfer of any real estate within the town. The 1% RETT goes into a general fund to help pay for services provided by the town including snowplowing, policing, and parks maintenance.

ADDITIONAL TRANSFER TAX FOR CERTAIN DEVELOPMENTS

An additional Real Estate Transfer Assessment (RETA) has been added to certain subdivisions in the Town of Winter Park. The additional RETA helps to offset the impact the subdivision has on workforce housing and Town services and was negotiated during the permitting process. As you search for homes in Winter Park, be aware of the additional transfer tax in the following subdivisions:

  • Arrow at Winter Park: 0.5% additional RETA on all residential property excluding Lots 1-9, Block 3 and Lots 1-9 Block 4.
  • Cooper Creek: 1% additional RETA on all commercial property; 1.5% additional RETA on all residential property
  • Headwaters Center: 0.5% additional RETA on all residential property
  • Hideaway Station: 0.5% additional RETA on all residential property
  • Idlewild: 1% additional RETA on all residential and commercial property
  • Lakota Park: 1.5% additional RETA on all residential property
  • Rendezvous Center: 0.5% additional RETA on all residential property
  • Rendezvous Winter Park: 1% additional RETA on all residential and commercial property
  • Roam: 1% additional RETA on all commercial property; 1.5% additional RETA on all residential property
  • WP Enterprises: 1% additional RETA on all commercial property; 1.5% additional RETA on all residential property

You can also check out the interactive RETA map. Not sure if a property you have your eye on is in one of the RETA subdivisions? Reach out - we'll confirm any additional transfer tax if so!

EXEMPTIONS

Certain real estate transfers are exempt from the transfer taxes (both RETT + RETA). Property transfers where the consideration is for less than $500 are exempt. Additional exemptions include gifts of real property and 1031 Exchanges. Learn more about other less common exemptions in the exemption application

WHO PAYS - BUYERS OR SELLERS?

Transfer taxes are only paid once and are due at closing. Typically, the buyer is responsible for them, but it's not uncommon for the two parties in a sale to work out an alternative arrangement. On the Colorado Residential Contract to Buy and Sell, there are three options: Seller pays, Buyer pays, or the two parties split the cost. This can be overridden to have a different percentage (such as 70% paid by buyer, 30% paid by seller), but that is a rare occurrence. 

ARE REAL ESTATE TRANSFER TAXES DEDUCTIBLE?

Should the buyer pay the transfer taxes and documentary fees, they cannot deduct them; the buyer accounts for these expenses when determining a budget (a consideration we will guide you through in the buying process). If the seller pays any taxes and fees, they can classify them as expenses, which will reduce the overall taxable amount earned from the property sale.

LEARN MORE

If you're considering buying or selling a home in the Town of Winter Park, we can give you all the tax and fee information you need!  We want to make sure you have all the numbers when you're making your Winter Park real estate investment: transfer taxes, state document fees, expected property taxes, tap fees, and more. Let us know if we can answer any questions you have as you prepare to buy or sell a Winter Park property! 

Posted by Angela McDonough (Sandstrom) on

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