Avon Town Council Mulls Increasing the Primary Residence RETT Exemption
Avon, CO – At the August 27th regular meeting of the Avon Town Council, the Town Council approved, on First Reading, an ordinance that would increase the Primary Residence Exemption amount home buyers can seek on the Real Estate Transfer Tax (RETT) levied by the Town of Avon. If approved after the Public Hearing and Second Reading scheduled for the September 10th Regular Council meeting, the RETT exemption would increase from $160,000 to $400,000 for all Avon home buyers.
The Avon Municipal Code establishes a variety of exemptions from the applicability of RETT, which may relieve a portion or all of the RETT due to the Town. One of those exemptions is the Primary Residence Exemption. Currently, if applicants meet the conditions of the Primary Residence Exemption, the first $160,000 of the purchase price is exempted from the 2% RETT, which translates into $3,200 in RETT relief for the buyer.
In recent years, the Town Council has expressed interest in considering an increase to the Primary Residence Exemption. Any increase to the exemption is expected to impact the Capital Projects Fund as all RETT revenues are earmarked for the Town’s capital projects. An increase from $160,000 to $400,000 is expected to reduce Capital Projects Fund revenues by approximately $312,000 per year. In addition, making the first $400,000 of the purchase price exempted from the 2% RETT would translate into $8,000 in RETT relief for the buyer.
The proposed ordinance and supporting materials can be found on the Town’s website at www.avon.org/councilpacket after 3:00 p.m. on Friday, September 6th. To provide comment on the proposed ordinance, please email comments to Brenda Torres, Town Clerk, at firstname.lastname@example.org. The September 10th Council meeting will begin at 5:00 p.m. at Avon Town Hall, located at 100 Mikaela Way in Avon.