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TO: Mayor Richard C. Irvin
FROM: Charlie Koch, Asst. Director of Finance, Revenue & Collections
DATE: September 7, 2017
SUBJECT:
To establish an Administrative Processing Fee for "Exempt" Real Estate Transfer Stamps Transactions.
PURPOSE:
To obtain the City Council's approval of a new Administrative Processing Fee for exempt real estate transfer stamp transactions for the Department of Revenue & Collections.
BACKGROUND:
During Mayor Irvin's first few weeks in office, he visited all city departments to greet employees and learn more about the responsibilities of individual departments and divisions. While visiting the department of Revenue and Collections (R&C), one of the employees referenced a request to see the city administer an administrative fee on "exempt" real estate transfer stamp transactions. Currently, the city collects a fee for "standard" real estate transfer stamp transactions, but there is no charge for exempt (foreclosures, quit claim, trust, etc.) transactions, which are more labor intensive.
DISCUSSION:
There are two distinct types of stamps, one is a standard or traditional transaction, which has a fee for service built in the process as well as "exempt" transactions (foreclosures, quit claim, trust, etc.) and are currently processed free of charge. Exempt transactions are traditionally more labor intensive than standard transactions.
For example, in 2016 R&C processed 4,865 real estate transfer stamps of which approximately 25% were exempt. On average, staff spends thirty (30) minutes per stamp researching and completing any necessary paperwork, which means each exempt transfer stamp transaction costs the City of Aurora approximately $22.19.
Staff has recommended the implementation of a $30.00 administrative processing fee to cover staff time, which is consistent with the fee charged for a lost Real Estate Transfer Stamp. The city will send out letters informing local attorneys, title companies and organizations of the administ...
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