FAQs
Metropolitan Districts are a local unit of government created to fund public infrastructure for new development with debt repaid by taxes and/or fees levied only within the new district’s boundaries without burdening the existing taxpayers of that City or County. Public infrastructure can include streets, water, sewer, storm drainage, parks, and other similar improvements.
A mill levy is a property tax. It is applied to a property based on its assessed value. The rate of the tax is expressed in mills and is equal to one dollar per $1,000 dollars of assessed value.
District taxes function in the same manner as other property taxes in Colorado with a mill levy applied to Assessed Value of property as determined by the County Assessor and collected by the County Treasurer. For residential property, that calculation is:
Actual Value x Assessment Ratio x Mill Levy = Annual Tax Obligation
For a $400,000 home in a District with a 50 mill levy using the 2020 Assessment Ratio for residential property, the tax bill for the District would be:
$400,000 x 7.15% x 0.050 =$1,430/year
The actual mill levy for a District is comprised of a debt service levy and an operations levy and would be determined based on the provisions of the Service Plan, the total valuation of taxable property in the District, the District’s debt obligations and the District’s operational needs. Most Service Plans contain mill levy limitations to ensure that taxpayers obligations are limited regardless of the debt obligations outstanding.