Are you budgeting for a Snowmass Village purchase or sale and wondering how the 1 percent transfer tax works? You are not alone. Getting this line item right keeps your closing smooth and avoids last‑minute surprises. In this guide, you will learn who typically pays, when the tax is due, what exemptions may apply, and a simple checklist you can use with your title team. Let’s dive in.
What the 1% transfer tax is
Snowmass Village imposes a municipal Real Estate Transfer Tax at a rate of 1 percent on transfers of real property inside the Town limits. This local tax is separate from Pitkin County recording fees and any state charges. It is typically calculated on the consideration for the transfer, often the contract sale price. Because municipal codes can change, confirm definitions like “consideration” with the Town or your closing agent.
Who pays the 1% tax
Legal liability vs. contract choice
Town ordinances usually name the party that is legally responsible to remit the tax. In many markets that is the seller, but your purchase agreement can allocate payment to either party or split it. Do not assume. Decide who pays in writing early in your negotiations.
How it works at closing
Title companies and closing attorneys often collect the tax at closing and remit it to the Town with required forms. They follow the contract’s allocation while honoring the ordinance. Coordinate with your title team so funds are in place and paperwork is complete.
When it is due and how it is paid
The transfer tax is commonly due at closing or at the time the deed is recorded. Many municipalities require payment before the deed will be accepted for recording. The typical path is simple. Your closing agent itemizes the tax on the closing statement, collects funds, completes the Town’s transfer tax return or remittance form, and submits payment with the deed for recording. Late or missing payment can lead to penalties or delays, so align on timing with your title team.
How to calculate your tax
The base is usually 1 percent of the consideration for the transfer. Here is a straightforward example:
- Sale price: 1,200,000 dollars
- 1% RETT: 12,000 dollars
If the deal includes non‑cash consideration, an assumption of debt, or seller financing, check whether those amounts are included in the taxable base under the Town’s definition of consideration. When in doubt, disclose the structure to the title company and ask how the Town expects you to calculate it.
Common exemptions to discuss
Exemptions are defined by the Town’s ordinance and usually require supporting documents. Common categories to ask about include:
- Transfers between close relatives or spouses, including marriage or divorce related transfers.
- Transfers under court order, such as probate or quiet title.
- Transfers to or from governmental entities.
- Gifts or transfers for nominal consideration, supported by an affidavit.
- Transfers to effect a partition, merger, or reorganization among related entities.
- Certain secured creditor transfers tied to foreclosure or deed‑in‑lieu.
- Internal transfers among commonly controlled entities, when strict control tests are met.
- Refinances that do not convey title are generally not taxable, but verify if any ownership interest is changing.
Expect to provide an exemption affidavit and documents such as a Closing Disclosure, deed, court order, or corporate ownership schedules. Missing forms can delay recording.
Practical checklist for buyers, sellers, and advisors
Use this as a working list with your agent and title company. Confirm in the municipal code or with the Town or closing agent. This is a general guide.
Pre‑contract
- Confirm the property sits inside Snowmass Village town limits.
- Identify the legally liable party under the Town ordinance.
- Decide who pays the 1 percent tax in the purchase contract.
- Confirm your title company will collect and remit the tax at closing.
Prepare for closing
- Verify the sale price and any non‑cash consideration or debt assumptions.
- Request the Town’s transfer tax return or remittance form early.
- If claiming an exemption, complete the exemption affidavit and gather support, such as marriage certificates or probate orders.
- Ensure the deed and Closing Disclosure show consideration clearly.
At closing
- Check that the closing statement lists the transfer tax and allocates it correctly.
- Provide a certified check or wire for the tax to the closing agent, per instructions.
- Submit the transfer tax return, payment, any exemption affidavit, and the deed for recording.
After closing
- Confirm the Town’s receipt and that the deed recorded.
- Save the remittance receipt and recorded deed for your records and future audits.
Special situations to watch
- Silent contracts: If the contract does not say who pays, default legal rules may apply. Add a clear clause before you sign.
- Assumed mortgages: Some ordinances include assumed debt in consideration. Ask your title company how the Town treats it.
- Foreclosure or deed‑in‑lieu: Some creditor transfers are exempt, but documentation is key.
- Entity reorganizations: Exemptions often exist for transfers among commonly controlled entities, but proof of ownership and control is required.
- Remote or out‑of‑state closings: The property’s location controls the tax. If the home is in Snowmass Village, the Snowmass tax applies regardless of where the parties live or sign.
Local guidance for a smooth Snowmass closing
Snowmass transactions often involve unique property types, from slopeside condos to custom homes. Align early on who pays the 1 percent tax, confirm whether any exemption applies, and have your title team prepare Town forms in advance. A clear plan protects your timeline and avoids recording delays.
If you want a second set of eyes on your contract language or a quick estimate of your closing costs, reach out. Jessica brings hands‑on local experience across Aspen and the Roaring Fork Valley, and coordinates closely with title to keep your closing on track.
Ready to talk through your situation in confidence? Schedule a confidential consultation with Unknown Company.
FAQs
Who pays Snowmass Village’s 1% real estate transfer tax?
- The ordinance identifies legal liability, but the purchase contract can allocate payment to the buyer, seller, or split, so decide and state it clearly in writing.
When is Snowmass Village’s transfer tax due in a typical sale?
- It is generally collected at closing and must be paid before the deed will be recorded, so plan for funds and forms to be ready on closing day.
How do I calculate Snowmass’s 1% tax on a 1.2M purchase?
- Multiply the consideration by 1 percent, so 1,200,000 dollars times 0.01 equals 12,000 dollars, subject to the Town’s definition of consideration.
Are family or spousal transfers exempt from the Snowmass tax?
- Many municipal codes include exemptions for certain close‑family or marital transfers, but you must complete an exemption affidavit and provide supporting documents.
Does assuming a mortgage increase the Snowmass tax base?
- It might, depending on whether the Town defines consideration to include assumed debt, so disclose the structure and confirm with your title company.
What if our purchase contract is silent about the 1% tax?
- Default liability under the ordinance may apply, but it is better to amend the contract and allocate responsibility to avoid disputes at closing.
