Red Lady Realty - Crested Butte, CO

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Real Estate Transfer Taxes in the Crested Butte Area

May 15, 2017
While the state of Colorado does not allow areas to create new real estate transfer taxes, there are some areas near Crested Butte that adopted a transfer tax before that amendment was passed.  Since these transfer taxes are calculated based on the purchase price, it is important to know if there is one that applies to a specific property as it could have a substantial impact on your bottom line.  How transfer taxes are split between the buyer and the seller is negotiable so be sure to talk to your Realtor to determine how best to handle this in your Colorado Contract to Buy and Sell. 

In the Crested Butte area there are three transfer taxes.  

The first and largest is the Town of Crested Butte Real Estate Transfer Tax of 3%.  This applies to the transfer of any property within the town limits.  Half of this tax goes to the preservation of open space outside the Town limits of 1991.  The other half goes into the Town’s General Capital Fund.

The second area with a transfer tax is the Prospect Area of Mt. Crested Butte.  This includes Prospect Subdivision and Wildhorse at Prospect. This 2% transfer tax is collected by the North Mt. Crested Butte POA and then are transferred to Reserve Metro District No. 1.  The money is currently used to pay off some equipment and other debt regarding road construction as well as road maintenance expenses.

The third and final transfer tax applies to sales in the Grand Lodge, Lodge at Mountaineer Square & Elevation.  Funds are used to cover operating costs - snow removal, snow melt systems, landscaping, exterior grounds maintenance.  It is also used for promotion & events in Mt. CB - includes free summer music series.

The number of properties affected by a transfer tax is relatively low, but it is good to know before you decide where to buy if one might apply to your purchase.  As always, the agents of Red Lady Realty can answer any questions about this or any other topics regarding buying or selling in the Crested Butte area.  Contact one today!