A Colorado metro district is a local government that pays for streets, water and sewer lines, parks and other public improvements in new neighborhoods. If a home sits inside one, you pay a separate metro district property tax levy each year, and sometimes fees too, on top of your county, city and school taxes. Colorado law now requires most sellers in these districts to give buyers specific documents that explain the district’s debt, tax rates and fees.
Key takeaways
- A metro district adds its own mill levy, and possibly fees, to a home’s yearly property tax bill.
- The debt-levy cap is a ceiling on one piece of the tax. Your total bill can still be higher.
- Since August 2025, resale sellers in many districts must also hand over district disclosures.
- Below: a worked tax example and a checklist to use before your due-diligence deadline.
This article is general education, not legal or tax advice. Confirm every figure with the district, the county treasurer and your own contract documents.
What a metro district is (and how it differs from an HOA)
Metro districts are the most common type of special district created under Colorado’s Title 32. They finance public improvements such as streets, water and sewer systems, and parks for new development, according to the Colorado Division of Local Government. Special districts are local governments. The City and County of Denver publishes a metropolitan districts dataset showing their boundaries.
Because a metro district is a government, its charges show up as a tax levy on your property tax bill. An HOA is a separate thing. Buyers mix the two up because some metro districts also enforce covenants or run design review, jobs people usually associate with an HOA.
When a metro district does covenant enforcement, HB24-1267 (effective August 7, 2024) requires it to adopt written fine and dispute policies. It cannot foreclose on liens from covenant-violation fines. It also cannot prohibit things like flags and signs, xeriscape or drought-tolerant landscaping, rain barrels, defensible-space vegetation removal, or renewable energy devices, though reasonable rules still apply.
How a metro district charges you
A metro district can collect money in three main ways.
The debt-service mill levy
Districts borrow by issuing bonds and repay them with a debt-service mill levy. Colorado law allows general obligation debt payable from a limited debt levy that “shall not exceed fifty mills”. Each district’s service plan sets its own caps. The seller’s disclosure must say whether that cap can be adjusted for changes in the assessment ratio, service-plan amendments or voter authorizations, under C.R.S. 38-35.7-110.
The operating mill levy
Districts may also levy a separate operating mill levy on top of the debt levy. This pays for running the district.
Fees and other charges
Districts may impose fees, rates, tolls, penalties or other charges, and the district can give you a current fee schedule (C.R.S. 38-35.7-110).
Why the “cap” is not your total
A cap limits one levy. Your real cost from the district is the debt levy plus the operating levy plus any fees. And the district is only one line on the bill. County, city, school and other districts all add their own levies. For a refresher on how mill levies and assessed value work, see our guide to Colorado property taxes.
Worked example: estimating a metro district tax (hypothetical)
The numbers below are made up to show the math. They are not typical levies for any district.
For 2026, Colorado’s residential local-government assessment rate is 6.80%, applied after a 10% reduction of the first $700,000 of actual value (minimum $1,000 assessed). Metro districts are local governments, so their levy applies to this local-government assessed value. School districts use a separate 7.05% rate on full value.
Step 1: Find the assessed value. Assume a $600,000 price that also equals the home’s actual value.
- $600,000 − (10% × $600,000) = $540,000
- $540,000 × 0.068 = $36,720 assessed value
Step 2: Apply a hypothetical combined metro district levy of 55 mills (debt plus operating). One mill is $1 per $1,000 of assessed value, so multiply by 0.055.
- $36,720 × 0.055 = $2,019.60 per year, about $168 per month
Step 3: Compare a hypothetical 30-mill district.
- $36,720 × 0.030 = $1,101.60 per year, about $92 per month
The gap between the two is about $918 a year on the same house. That covers the metro district only. Every other taxing entity is added on top. Use the real levies from the district’s Notice to Electors and the county treasurer’s tax statement for any actual home.
What the seller must give you
Colorado has added buyer disclosures in three steps.
2022: new construction
Since January 1, 2022, under SB21-262 and C.R.S. 38-35.7-110, a seller of a newly built home in a metro district must give the buyer, before or with the contract:
- The district’s most recent Notice to Electors
- The service plan
- A written statement of the district’s debt authority, maximum debt-service mill levy (and whether it can be adjusted), operating levy and fees
- An estimate of the district’s property taxes for the current year, showing the total mill levy and a dollar amount based on the purchase price, residential assessment rate and current levies
- The county tax statement showing overlapping levies
The estimate must carry a bold statement that it is only an illustration and that first-year taxes may be lower than later years.
2024: the district website
Since January 1, 2024, under SB23-110 and C.R.S. 38-35.7-111, a seller of a home in a metro district organized on or after January 1, 2000 must give the buyer the district’s official website. It goes on the Colorado Real Estate Commission’s Seller’s Property Disclosure or another writing provided at the same time. Our guide to the Seller’s Property Disclosure covers that form in more detail.
2025: resales too
HB25-1219 was signed May 29, 2025 and took effect August 6, 2025. It extends the disclosures above to sellers of any residential property in a metro district organized on or after January 1, 2000. The Legislative Council fiscal note confirms this includes resales. The tax estimate must be given in a dollar amount, and sellers must add a written statement that certain district actions may increase residents’ costs. The bill also requires new service plans to state a maximum term for a residential debt-service levy.
Metro district documents and where to find them
| Document | What it tells you | Where to get it |
|---|---|---|
| Notice to Electors | Current mill levy, last year’s property tax revenue, directors, meetings and elections. Sent each year no more than 60 days before and no later than January 15 (C.R.S. 32-1-809) | Seller disclosure package or the district |
| Service plan | Debt authority, levy caps and whether caps can be adjusted | Seller disclosure package or the district |
| Public disclosure document and boundary map | That the district can issue debt, levy taxes and impose fees, plus where its boundaries are (C.R.S. 32-1-104.8) | County clerk and recorder |
| District website | Board contacts, current budget, prior-year audit, annual report, meeting schedule, election results and boundary map (C.R.S. 32-1-104.5). HB25-1219 adds a plain-language explanation of the district, its debt and overlapping governments | URL from the seller’s disclosure |
| County tax statement | Every overlapping levy on the property, including the district’s | County treasurer or seller disclosure package |
| Audit and financial statements | Outstanding debt, listed in the “Long-Term Debt Notes” | DOLA’s Local Government Information System (LGIS) or the Office of the State Auditor (DOLA resident guide) |
How to check if a home is in a metro district
Start with the seller’s disclosures and the county tax statement. The tax statement lists each taxing entity, so a metro district will appear by name.
You can also look at the State Demography Office’s interactive special-districts map. Boundaries change, so confirm with the local jurisdiction. The district’s public disclosure document and boundary map are recorded with the county clerk and recorder.
Questions to ask before your due-diligence deadline
Give yourself time to read the district documents before your due-diligence and inspection objection deadlines. Use this checklist:
- Current levies. What are the debt and operating mill levies today, and what dollar amount does the seller’s estimate show?
- Unissued debt. Has the district been authorized to issue debt it has not issued yet? DOLA notes that when more bonds are issued, “taxpayers face increased payment obligations” (DOLA).
- Developer contributions. Is the developer covering shortfalls? How long will that continue, and when does the debt burden shift to owners?
- Cap adjustments. Can the debt-levy cap be adjusted for assessment-rate changes, service-plan amendments or voter approval?
- Fee schedule. What fees does the district charge now? Ask for the current schedule.
- Covenant enforcement. Does the district enforce covenants or run design review? Ask for its written fine and dispute policies.
- Separate HOA. Does the community also have an HOA with its own dues?
- Annual meeting. When is the next one? Under SB23-110, districts organized after January 1, 2000 that have homes must hold an annual meeting covering infrastructure, outstanding bonds and year-to-date finances, with a public Q&A.
Fold the district’s yearly cost into your monthly budget alongside the one-time closing costs Colorado buyers pay. If you work with a Trelora agent under a buyer agency agreement, they can help you request and read these documents during due diligence.
Frequently asked questions
Is a metro district the same as an HOA?
No. A metro district is a local government organized under Colorado’s Title 32, and it collects money through a property tax levy and fees. Some metro districts also enforce covenants, which is why people confuse the two. Ask whether the community has a separate HOA as well.
Do metro district taxes ever go away?
No single rule covers every district. Under HB25-1219, new service plans must state a maximum term for a residential debt-service levy. The operating levy is separate, so read the service plan and ask the district how long each levy is expected to last.
Can a metro district raise my taxes?
It can. The debt-levy cap may be adjustable for assessment-rate changes, service-plan amendments or voter authorizations, and issuing more authorized debt increases what owners owe. Sellers must now include a written statement that certain district actions may increase residents’ costs.
Does the seller have to tell me the home is in a metro district?
For districts organized on or after January 1, 2000, yes. Sellers must provide the district website and, since August 6, 2025, the full disclosure package, including resales. Every special district must also record a public disclosure document with the county clerk and recorder.
Can I vote in metro district elections?
Generally, yes, if you are eligible. Regular special-district elections are held in May of odd-numbered years, and eligible electors are generally registered Colorado voters who live in or own property in the district (DOLA).
David Speers is a seasoned Prop-tech and Real Estate Analyst dedicated to demystifying the complexities of the modern property market.