Money and taxes
HOA vs Metro District in Colorado: What You Pay
An HOA collects dues and enforces covenants.
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An HOA is a private association that collects dues and enforces covenants. A metro district is a local government that levies property tax, shown as mills on your tax bill, to pay for roads, water lines and amenities and the debt that built them (Colorado DOLA). Many newer Front Range communities have both.
What is an HOA?
- A private association run by an owner-elected board.
- It collects dues and enforces the covenants and architectural rules.
- Colorado HOAs register with the Division of Real Estate's HOA Information and Resource Center.
- It places a lien on the home for unpaid dues.
What is a metro district?
- A special district, which is a unit of local government.
- It builds and maintains things like streets, water and sewer lines, parks and pools.
- It pays for them with property tax mills and, in many districts, bonds.
- An elected board runs it and holds public meetings.
How do I see what a metro district costs?
- Look at the property tax bill. Each district shows as its own line.
- Look up the district's service plan, budget and debt in DOLA's Local Government Information System.
- State law requires disclosures to buyers when a home sits in a special district that levies taxes (Colorado DOLA).
Can a home have both?
- Yes. Many master-planned communities built in the last 25 years have an HOA and a metro district.
- Add both to your monthly budget before you write an offer.
- A title company and your agent pull both before your inspection deadline.
What should I ask before I buy?
- The HOA's dues and any planned special assessments.
- The HOA reserve balance and its last reserve study.
- The metro district's mill levy and when its debt is scheduled to be paid off.
- Whether the dues or the mills are set to rise.
How are they taxed differently?
- Metro district mills are property taxes, so they count with your other property taxes on a federal return.
- HOA dues on a primary residence are not deductible.
- This is not tax advice. Your CPA runs your numbers.
Quick answers
Questions, answered.
Is a metro district the same as an HOA?
No. A metro district is a local government that levies property tax. An HOA is a private association that collects dues.
Where do I find a metro district's debt?
In DOLA's Local Government Information System, which lists service plans, budgets and debt (Colorado DOLA).
Do metro district taxes go away?
Debt levies run until the bonds are paid. Read the service plan for the term.
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