CONSIDERATION: The gross consideration paid for the real property affected by the "transfer" and shall include actual cash paid, the money equivalent of real and personal property delivered or conveyed in exchange for the transfer, or contracted to be paid or delivered or conveyed, in return for the transfer of ownership or interests in real property, and shall include the amount of any lien, mortgage, contract indebtedness, or other encumbrance or debt, either given to secure the purchase price, or any part thereof, or remaining unpaid on the property at the time of transfer. The term does not include as an addition to gross consideration the amount of any outstanding lien or encumbrance in favor of the United States, the State of Colorado, or of a municipal or quasi-government corporation or district for taxes, special benefits or improvements. In the event the transaction or transfer is by lease agreement not specifically exempted in section 3-3-6 of this chapter, the consideration shall be deemed to be the capitalized value of the average annual rental unit of the lease, computed as follows: the average annual rental over the entire term of the lease, including any renewal term, plus the actual consideration, other than rent, paid or to be paid shall be computed and the average annual rental shall be ten percent (10%) of the capitalized value. The payment of ad valorem real property taxes, insurance and the assumption of maintenance obligations shall not be included in the annual rent capitalization computation; however, capital improvements required to be made shall be part of the actual consideration. When the average annual rental cannot be determined, or at the election of the town manager, the tax shall be based upon the appraised total value of the property covered by the lease as determined by an independent appraisal obtained by the town manager and paid for by the purchaser, or the capitalized value of the consideration in terms of the present worth of the stream of consideration under the lease and any other economic considerations to reflect the capitalized value of the transferred or leased property.

DEED IN LIEU OF FORECLOSURE: A conveyance by a property owner to a secured party of property which is the subject of a mortgage, deed of trust or other security instrument in consideration of the cancellation of all or part of the indebtedness secured by such security instrument.

PERSON: Any individual, corporation, business trust, estate, trust, partnership, association or any other legal entity.

REAL ESTATE TRANSFER TAX: The tax imposed by this chapter on the transfer of real property.

REAL PROPERTY: Real property, as defined by and under the laws of the State of Colorado.

TAXABLE LEASE: Any lease of real property within a term or initial term and all renewal terms which aggregate in length of twenty-nine (29) years or more; provided lessee has possession or the right to possession on payment of rents. "Taxable lease" also means any lease of real property for less than twenty-nine (29) years of term or initial term and all renewal terms aggregated if lessee has a clause which would permit lessee at its discretion to extend the lease beyond twenty-nine (29) years or if lessee has an option to purchase some or all of the real property leased. If lessee has a lease with such an option to purchase which option may be exercised only within three (3) years after the date the lease and option is entered into, then the land transfer tax shall not be due and payable unless and until the exercise and consummation of such option. If any other lease with such an option to purchase is entered into, the real estate transfer tax shall be due and payable at the time of such transfer as transfer is defined herein.

TRANSFER: Includes, whether or not the same is in writing or is recorded: (1) any sale, grant, assignment, transfer, exchange or conveyance of any ownership or title to real property situated in the town; (2) the sale, leasing, letting, conveyance, assignment or transfer of a possessory interest in real property, subject to the exemptions provided in this chapter. (Ord. 30, Series 2021)