Metro taxing districts are a part of a property's tax bill and are becoming more and more common in Colorado. Rather than including the costs of infrastructure such as roads and recreation facilities into the price of a newly built home, developers create a separate taxing district so that these expenses can be paid back over time. This keeps the prices of the homes lower, requiring less of a downpayment and creating more opportunities for home ownership.
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Helpful information for evaluating metro tax districts can be found at the Colorado Division of Local Affairs. One thing to look for is the number of homeowners on the board; the more homeowners, the more likely decisions regarding the neighborhood will be made in the interests of the homeowners. Also, checking on the amount of total debt that can be issued in the future can help potential buyers determine what the worst case scenario for the tax bill would be. Smaller districts with fewer homes should be able to determine with a fair amount of accuracy what the total infrastructure costs will be versus very large developments that build for many years.
Evaluating the metro tax district is an important but confusing part of the home buying process. If you need help, the Colorado Division of Local Affairs should be able to answer questions, as would the tax assessor in the county where the development is built. The existence of a metro tax district is not, in and of itself, something to be feared, but it is important to know what you're getting into.
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