What is a Transfer Tax?

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Henry Barr explains a few key points about transfer taxes…
Some people have asked me about “What is a transfer tax?” We are starting to see more and more of the transfer taxes here in Summit County. They are normally put into place by municipalities or taxing entities that want to collect upon each sale that occurs every time the sale of a real property occurs and they vary depending on where they are, for the amount, and what they are used for. Normally they are used for general fund such as parks and recreation, but each municipality or each entity can use them for different things. Some examples of transfer taxes are the town of Breckenridge and the town of Frisco, both have a 1% transfer tax. Copper Mountain has a 1.5% transfer tax on certain new properties that have been built recently. The town of Silverthorne has a transfer tax on some of the newer properties being built currently, but you really need to check with you realtor to find out if there is a transfer tax, how much it is and, if you’re interested, what it covers.