If you’ve ever fallen in love with a new neighborhood—only to see a jaw-dropping property tax estimate—there’s a good chance a metro district is behind it. These little-understood districts are becoming increasingly common across Colorado, especially along the Front Range, and they can make a real difference in your monthly costs as a homeowner.
What’s a Metro District, Exactly?
A metro district (short for metropolitan district) is a special taxing district created to fund public infrastructure like roads, parks, water, and sewer systems. Developers form them—under Colorado’s Title 32 law—so they can build neighborhoods without relying on city or county budgets.
They’re managed by an elected board (often made up of the developer or developer representatives in the early years) and paid for through property taxes rather than HOA dues. That means you’ll see the district listed as a line item on your annual tax bill, right alongside your county and school taxes.
Why Are There So Many in Colorado Right Now?
Colorado is one of the fastest-growing states in the country—and our cities don’t always have the funds to build new infrastructure fast enough. Metro districts act a bit like a long-term “loan” for community development: the district issues bonds to pay for things like roads, sidewalks, and parks, and homeowners repay that debt over time through higher property taxes.
This approach allows new neighborhoods like Sterling Ranch in Littleton, The Canyons and Timberline in Castle Pines, and Terrain, Cobblestone Ranch, and The Meadows in Castle Rock to spring up with beautiful amenities, trails, and open space years sooner than they otherwise could - and these kinds of amenities are things we see more and more buyers looking for in their new community.
Without metro districts, many of these communities would either be scaled down or delayed for decades. But that convenience comes with complexity—and cost.
Metro District vs. HOA: What’s the Difference?
Think of it this way:
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HOA = handles what you see every day—the pool, clubhouse, design standards, and neighborhood events.
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Metro District = pays for what’s under your feet—roads, sewers, water, and sometimes the very land the community sits on.
Some neighborhoods have both, like Timberline and The Canyons in Castle Pines, and Sterling Ranch in Littleton. Others—like parts of Founders Village—have only a metro district. And a few established areas, such as sections of Highlands Ranch, Castle Pines, and Parker, rely on a more traditional HOA + Metro partnership that’s been refined over time.
Recently, The Meadows in Castle Rock made headlines as homeowners questioned how metro district funds were managed—proof that transparency and understanding are more important than ever.
A Real-Life Example
A few years ago, I worked with clients ready to make an offer in Timberline at Castle Pines. The home checked every box and they'd be able to move in before Christmas—until their lender ran the numbers and the tax bill came in several thousand dollars higher than expected. The culprit? The metro district’s mill levy. They ultimately bought in a neighborhood with an HOA but no metro district, saving hundreds per month in taxes.
It’s a reminder that the true cost of homeownership isn’t just the mortgage—it’s everything attached to that address.
How to Check if You’re in a Metro District
Metro districts aren’t always obvious, so it’s smart to check early in your home search:
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Review your property tax bill for any “Metropolitan District” listings.
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Ask your agent or lender for the Title 32 disclosure, required in every Colorado real estate transaction.
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Visit your county assessor or treasurer’s website to see which taxing entities apply.
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For new builds, request the current mill levy and any future increase projections from the builder and confirm with the title company and your Realtor.
Mill levies in metro districts often range from 50–90 mills, compared to 30–40 in older neighborhoods. That can translate to $3,000–$5,000+ per year in additional property taxes for a typical home—something most buyers don’t realize until they’re deep in the process.
Pros and Cons of Metro Districts
Why they help: Metro districts allow builders to install critical infrastructure up front—so homes, parks, and schools can be built now, not decades from now. They make growth possible without relying entirely on municipal budgets and can create well-planned, amenity-rich neighborhoods that boost overall property values.
What to watch for: Higher long-term taxes, limited homeowner control (especially early on), and confusing governance structures. Even as districts mature, mill levies don’t always decline as expected—something both buyers and sellers should ask about when evaluating value and affordability.
Buyer and Seller Takeaways
For Buyers: Don’t just look at the mortgage—look at total monthly cost of ownership (PITI payment plus utilities). A metro district can shift affordability far more than an HOA fee ever will.
For Sellers: Be prepared to discuss your district confidently. Highlight what your taxes fund—parks, snow removal, trails, and well-maintained roads—to show buyers the value behind the numbers. Transparency always builds trust.
Want to Learn More?
For a deep dive into how metro districts work, homeowner rights, and current legislative efforts, check out the Metro District Education Coalition. It’s an excellent nonpartisan resource for anyone living in or moving to a metro district in Colorado.
The Bottom Line
Metro districts aren’t inherently bad—they’re just often misunderstood. Whether you’re buying or selling, understanding how they work (and what they fund) can make all the difference in pricing, negotiations, and long-term satisfaction.
If you’ve ever scrolled through homes wondering why two nearly identical houses have wildly different taxes, it’s probably a metro district at play. Before you fall in love with the photos, let’s make sure the fine print doesn’t break your heart. ❤️