What Is A Special (Tax) District?

Chances are if you’re moving into a new neighborhood it will be in a Special Taxing District organized under Title 32, Article 1 of the Colorado state statute. And within these Special Taxing Districts, are Metropolitan Districts.

It is important to know this information upfront before making an offer on a home as it will reflect higher taxes than neighborhoods that are not in a Special Taxing District. If you’re working with a licensed real estate agent they can help guide you in finding the information needed. Each district varies as to the number of mills collected on the assessed value of a home. However, many of the new neighborhoods that are in this district do not have an HOA fee (on detached homes.)

Here are some quick facts about Metropolitan Districts:

• They provide 2 or more specific services

• It is a separate mill-levy tax and can vary between 20mills to 75mills

• Special Districts are created to:

• Provide architectural and covenant compliance (much like an HOA)

• Fund new infrastructure by those who will benefit (homeowners within the district boundaries)

• Help public infrastructure be financed over time vs borrowing upfront

• Provide permanent operation and maintenance of certain public improvements that are not taken care of by a municipality.

• Establish revenue for long term maintenance and operation

• Property owners can deduct these taxes on their Federal Income Tax Return (HOA’s are not deductible)

Read This Guide to Special Districts.