What Is a Metro District?
A metro district (short for metropolitan district) is a special taxing district created under Colorado law. It allows developers to issue bonds to pay for infrastructure like:
- Roads and streets
- Water and sewer systems
- Parks, trails, and open space
- Streetlights and landscaping
- Community amenities (pools, clubhouses, playgrounds)
In return, homeowners in the district pay an additional property tax (called a "mill levy") to repay those bonds over time—typically 20 to 40 years.
Here's the key point: This tax is separate from your regular property tax, HOA dues, and mortgage payment. If you don't account for it, your actual monthly housing cost could be significantly higher than expected.
How Metro Districts Affect Your Monthly Payment
Metro district taxes are calculated using mill levies. A mill is $1 for every $1,000 of assessed value. In Colorado, residential property is assessed at about 6.7% of market value.
Example: $500,000 Home with 60 Mill Levy
Market Value: $500,000
Assessed Value: $500,000 × 6.7% = $33,500
Annual Metro Tax: $33,500 × 60 mills ÷ 1,000 = $2,010/year
Monthly Impact: ~$168/month
That's on top of your mortgage, regular property taxes, insurance, and HOA dues. In some Northern Colorado communities with higher mill levies (70-80+ mills), this can add $300-$500+ per month to your total housing cost.
Metro District Monthly Cost Estimator
Colorado residential default: 6.7%
Disclaimer
This is an estimator only. Actual metro district taxes depend on the specific district's mill levy and your home's assessed value, which may differ. Always verify exact figures with the builder, county assessor, or your real estate agent before purchasing.
Metro District vs. Non-Metro District Communities
Non-Metro District Community
- Lower overall property taxes
- No additional metro tax payment
- Simpler monthly cost calculation
- May have higher base home prices
- May have fewer amenities
Metro District Community
- Lower base home prices (often)
- More amenities included
- Brand-new infrastructure
- Higher monthly cost (taxes)
- Mill levies may change over time
Buyer Pros & Cons of Metro Districts
Potential Benefits
- Access to communities with amenities that might not exist otherwise
- Lower upfront home prices (savings financed over time)
- New, well-maintained infrastructure from day one
- Taxes may decrease once bonds are paid off
Potential Drawbacks
- Higher total monthly housing cost than it appears
- Mill levies can change or new bonds can be issued
- Can affect resale—buyers must understand the taxes
- Complex disclosures that are easy to overlook
Questions to Ask Before Buying in a Metro District
- 1What is the current mill levy? Get the exact number, not a range.
- 2What is the maximum mill levy? Districts often have caps that are much higher than current rates.
- 3When do the bonds mature? Know when (or if) taxes might decrease.
- 4Are there multiple districts? Some communities have overlapping metro districts.
- 5What does the metro district cover? Understand what you're paying for.