Homebuyers get break from Avon
Vail, CO Colorado
AVON, Colorado ” Avon will be adding a second exemption to its real estate transfer tax, the town council decided Tuesday.
Councilman Dave Dantas said adding the exemption would be a small but needed break for many families and would be one way of keeping people in Avon. Other council members were more skeptical of how well a second exemption would entice people to stay in Avon, but believed the tax break sends a positive message to residents.
Any time real estate changes hands in Avon, a 2-percent tax is imposed. There was a one-time exemption of $160,000 on the sale price for people who make Avon their primary home, which saved buyers $3,200.
Dantas proposed adding a second exemption for people moving within the town. If a family living in Avon wants to buy a new house in Avon ” maybe buy a bigger home for a growing family ” they were penalized for it by the transfer tax, he said.
So, Dantas wanted to add a second exemption and entice people to stay in-town if they want to buy a new home. It may be only a few thousand dollars, but he said that can make or break a family’s budget.
The approved second exemption would only apply to homeowners who live and work in Eagle County. The town could lose around $80,000 a year by adding this second exemption. Money from the transfer tax goes exclusively to capital improvement projects such as building new bike paths.
Councilman Brian Sipes said that of all the people he knows who have moved down valley from Avon, none of them mentioned the transfer tax as a reason. Most of those people moved for a variety of other reasons ” bigger, cheaper homes being a major one, he said.
And if the exemption tax isn’t a big factor in people’s decisions, Sipes said he’d hate to lose out on money that could be spent on things like bike paths. Still, Sipes voted yes and said adding the second exemption tells residents that they’re valued.
Staff Writer Matt Terrell can be reached at 748-2955 or email@example.com.
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Are we seeing more bears because there are more bears on the valley floor, or because we’re all spending more time at home? It could be a bit of both.