Buying your dream home in the Vail Valley is exciting; however, one line on the closing statement may surprise many buyers: a Real Estate Transfer Tax or Assessment. If you have compared resort markets, you know these Taxes and Assessments can change your true cash due at closing. Understanding how Transfer Taxes and Assessments are applied helps you plan with confidence and negotiate smart. In this guide, you’ll learn what the transfer Tax and assessment are, when they are charged, common exemptions, who pays, and how to budget for them. 

What is a Transfer Tax or Assessment?

A real estate transfer tax or assessment is a charge imposed by a Town or District when real property changes hands and the deed is recorded. It is separate from Eagle County recording fees and from property taxes. Towns and Districts create these assessments by local ordinance, and revenue is used for local programs as defined in the municipal code.

Think of it like a transaction fee on the transfer of real estate. If you are comparing the Vail Valley area to other resort towns, treat this assessment as part of your effective purchase price. It can be a material closing cost, especially in luxury transactions.

Legal basis and authority to collect a Transfer Tax or Assessment:

For example, Vail’s assessment is established by Town Council action and implemented in the Town of Vail Municipal Code. The ordinance defines which transfers are taxable, the rate, exemptions, who is responsible for remitting payment, and how reporting works. For the current rate and official language, contact the Town Clerk or Finance Department, review the Municipal Code, and confirm with your title company.

When is the Transfer Tax or Assessment collected?

The assessment is typically triggered when the deed or other transfer instrument is recorded in the County Recordd and the sale closes. The title company calculates the amount at closing, collects it according to your contract, and records it on the buyer's and seller's settlement statements. They then remit it to the town or district. The title company also prepares any required town forms or affidavits.

Payment is collected at closing and remitted in accordance with the town’s reporting schedule. The assessment is separate from county recording fees paid to the Eagle County Clerk & Recorder. 

If payment is missed or an exemption is misapplied, the town may assess penalties or interest under the ordinance.  The title company can advise on timing and compliance.

Exemptions to Transfer Tax and Assesments:

Town ordinances often list specific transfers that are fully or partly exempt. Always verify eligibility early and be ready to provide documentation. Common categories to ask about include:

• Transfers between spouses or those tied to divorce settlements.
• Transfers to or from a revocable living trust where beneficial ownership does not change.
• Probate and court-ordered transfers related to estates.
• Transfers to or from government entities.
• Foreclosure or trustee’s sale transfers are treated differently by ordinance.
• Gifts, nominal consideration, or intra-family transfers that meet the ordinance criteria.
• Qualified affordable or deed-restricted housing transactions, where some towns apply special rules.

Even if an exemption applies, towns usually require specific paperwork, such as a divorce decree, trust documentation, court order, or an affidavit. Work with your title company to submit everything the town requires before recording. If an exemption is claimed without proper documentation, the assessment plus interest or penalties may be charged later.

Who pays the Transfer Tax or Assessment?

The ordinance often states who is legally liable, but the purchase contract allocates the cost to the buyer, the seller, or split between both. Local custom can vary by market and even by property type. Often in the Vail Valley, transfer tax and fees are split between buyer and seller; however, never assume, as they are part of a negotiated contract.  Make sure your contract clearly states who pays and how much.

If you are comparing resort markets, treat the assessment as a negotiable cost, similar to price. You can request that the seller cover it as part of the deal. If the seller will not pay, factor the assessment into your net price analysis so you understand your true cost relative to nearby towns. You can also propose a price adjustment equal to the assessment if you are expected to pay it.

Calculate the Transfer Tax or Assessment Amount:

Because the assessment is often a percentage of the sale price, a small difference in rate can mean a big swing in your cash to close. Confirm the current rate with the Town Clerk or Finance Department and your title company before finalizing terms. Then run the math.

Here are Eagle County transfer Tax rates and local Assessments: (Confirm the actual rate with the Title company before closing).

Vail ValleyTransfer Tax Schedule

Town of Avon 2%*

Town of Gypsum 1%

Town of Minturn 1%

Town of Vail 1%

Vail Valley Transfer Fees & Assessments

All Seasons Condos 1%

Anglers Preserve 0.67%

Arrabelle at Vail Square 1%

Arrowhead at Vail 1.5%

Bachelor Gulch 2%

Beaver Creek 2.375%

Buckhorn Valley (Wildlife Mitigation Fee) 0.01%

Cattleman’s Club 1%

Chateau at Beaver Creek 2%

Colorow at Squaw Creek 2%

Cordillera 2%

Cordillera Valley Club 2%

Eagle Ranch 1%

Frost Creek 1.7%

Haymeadow 0.6%

Red Mountain Ranch 0.4%

Red Sky Ranch 2%

Reserve at Hockett Gulch 2%

($250,000 max assessment per transfer)

Riverwalk at Edwards 1%*

Villas at Brett Ranch 1%*

* Exemptions of the Town of Avon Transfer Tax, Villas at Brett Ranch Fee, and Riverwalk Fee may be available in some cases.

Add the assessment to your other closing costs: down payment, lender fees, title and recording fees, prepaids and reserves, and any other contractual credits or debits. Ask your lender whether the assessment must be paid from your funds or whether it affects loan calculations.

Buyer checklist for Vail Valley Property Closings:

Use this practical checklist to avoid surprises and keep your closing smooth:

• Confirm the current assessment rate and the operative ordinance with the Town of Vail Town Clerk or Finance Department, and review the Municipal Code.
• Ask the listing agent and your title company who is paying under the current local practice, then ensure your contract spells it out.
• Tell your lender about the assessment and confirm whether it impacts loan proceeds or cash-to-close requirements.
• Have your title company calculate the exact amount on the draft closing statement and explain remittance steps.
• If you plan to claim an exemption, provide the required documents early and confirm what the town needs for approval.
• Verify whether a receipt or a specific form for the recorded deed is required, and how it will be handled.
• Include the assessment in your final funds-to-close plan and get written confirmation of remittance after closing.

Verify Transfer Tax and Assessments:

When you are ready to verify details, these are your core resources:  Your Real Estate Agent and/or

• Town Clerk’s Office and Finance Department for the current rate, ordinance text, and remittance procedures.
• Town Municipal Code for definitions, exemptions, penalties, and reporting rules.
• Eagle County Clerk & Recorder for recording requirements and county fees.
• Your title company for calculation, collection at closing, forms, and remittance.
• Your attorney will confirm the contract language.

Transfer Tax and Transfer Fees for home buyers:

If you are shopping in multiple resort markets, the transfer assessment should be part of your apples-to-apples comparison. Confirm the rate early, decide who will pay in the offer, and document any exemption with your title team. With a clear plan, you can avoid last-minute surprises and keep your closing on track.

If you would like a discreet, step-by-step review of your closing costs and local norms in the Vail Valley, we are here to help. Schedule a private, concierge consultation with the Vail Valley Team.