Key Takeaways
- A metro district is a local government: It is a special district under Colorado's Special District Act that provides two or more services, such as streets and parks. Property taxes fund much of it.
- The levy rides on your tax bill: The El Paso County Treasurer's 2025 schedule lists Banning Lewis Ranch Metro District No. 4 at 63.631 mills, on top of county, city, and school levies.
- 2026 assessment rates are set: Residential is assessed at 7.05% for school levies and 6.8% for local levies, with 10% of the first $700,000 of value subtracted for local levies only.
- Two disclosures reach every resale: The special taxing district warning (C.R.S. 38-35.7-101) and, for districts organized on or after January 1, 2000, the district's website (C.R.S. 38-35.7-111).
- Higher taxes shrink loan approvals: Lenders count taxes in the monthly payment, so an extra $146 a month can cost a buyer roughly $23,000 of borrowing room at an illustrative 6.5% rate.
- A cash sale skips the loan math: A direct cash buyer has no debt-to-income limit, though the disclosures and the tax proration still apply.
If you own a house in a metro district in Colorado Springs, Colorado, your tax bill carries a line many older neighborhoods do not have. That line pays for the roads, water lines, and parks a developer built before you moved in. When you sell, the line stays with the house, and buyers notice it.
This guide covers what a metropolitan district is, how its mill levy shows up on the El Paso County bill, and what Colorado law requires you to disclose. It also runs the numbers a financed buyer's lender will run. If you want to sell your house fast in Colorado Springs, the same facts shape what any buyer is willing to pay.
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Let's chatWhat Is a Metro District in Colorado Springs?
A metro district in Colorado Springs is a special district, a small unit of local government, that provides at least two public services and pays for them mostly with property taxes. Colorado's Special District Act defines a metropolitan district as one that provides "any two or more" listed services (C.R.S. 32-1-103(10)). The list includes street improvement, water, sanitation, parks and recreation, transportation, and fire protection.
A metro district is not an HOA. It has an elected board, holds public meetings, adopts a budget, and certifies a mill levy to the county each year. Some districts also handle covenant enforcement and design review, which is why the two get confused.
Why newer subdivisions use them
New subdivisions need streets, storm drains, water mains, and parks before the first house sells. The City of Colorado Springs describes metro districts as "independent entities with potentially broad powers to issue bonds for public improvement costs" (City of Colorado Springs, Special District Policy page). Many of them issue debt to repay the developer for a share of eligible public improvement costs.
The bonds are then repaid by a debt service mill levy on every house in the district. City Council approves each district's service plan. Council adopted a revised Special District Policy on August 9, 2022. The city page lists the usual caps as 30 mills for residential debt service, plus an operating levy of up to 10 mills. The city also notes Council has approved exceeding those caps in a few situations, and districts formed before 2022 generally stay under the older 2006 policy.
Banning Lewis Ranch as a real example
Banning Lewis Ranch on the far east side shows how layered this gets. Its website covers Banning Lewis Ranch Metropolitan District Nos. 1-4 and 8-11, plus Regional Metropolitan District Nos. 1 and 2 (Banning Lewis Ranch Metropolitan Districts, 2026). District No. 5 keeps its own site. The district's own explainer says District No. 1 runs the parks, trails, open space, and recreation facilities, and that the districts levy property taxes for capital improvements, maintenance, and operations.
How Metro District Taxes Show Up on Your Tax Bill
Metro district taxes in Colorado Springs show up as a separate line on your El Paso County tax statement, added to the county, city, school, and library levies. One mill is $1 of tax for every $1,000 of assessed value. Your total bill is the sum of every overlapping levy, so two houses on opposite sides of a district boundary can carry very different bills.
The El Paso County Treasurer publishes every certified levy each year. Its schedule for tax year 2025 (billed in 2026) lists more than 280 metropolitan district entries countywide, ranging from zero to above 80 mills (El Paso County Treasurer, 2025 Mill Levies). A sample of Colorado Springs districts from that schedule:
- Banning Lewis Ranch Metro District No. 4: 63.631 mills (66.696 the year before)
- Banning Lewis Ranch Metro District No. 3: 39.471 mills
- Banning Lewis Ranch Regional Metro District No. 1: 12.019 mills
- Gold Hill Mesa Metro District No. 2: 50.944 mills
- Wildgrass at Rockrimmon Metro District: 50.944 mills
- Banning Lewis Ranch Metro District Nos. 1, 9, 10, and 11: 0 mills
The district's own filings confirm these figures. Banning Lewis Ranch Metro District No. 4's 2026 transparency notice, filed under C.R.S. 32-1-809, reports 63.631 mills and $2,508,515 of unaudited 2025 property tax revenue (BLR Metro District No. 4, 2026). Which districts apply to your exact parcel is printed on your own statement.
The base levies everyone in the city pays
The Banning Lewis Ranch districts list their overlapping governments as El Paso County, the City of Colorado Springs, School District 49, Pikes Peak Library District, and the Southeastern Colorado Water Conservancy District. On the Treasurer's 2025 schedule those levy 6.857, 3.009, 45.649, 2.938, and 0.85 mills. That totals 59.303 base mills, before any metro district line.
2026 residential assessment rates
Colorado now uses two residential assessment rates. For tax year 2026, the Division of Property Taxation lists 7.05% for school district levies and 6.8% for local government levies (Colorado Division of Property Taxation, January 2026). The El Paso County Assessor's 2026 rate sheet adds that 10% of the first $700,000 of actual value is subtracted for local government levies only (El Paso County Assessor, 2026). A metro district is a local government, so its levy uses the 6.8% rate after that subtraction.
An Illustrative Tax Bill, With and Without District Mills
On an illustrative $450,000 Colorado Springs house, a 63.631-mill metro district roughly doubles the annual property tax, from about $1,824 to about $3,577. The formula is market value times the assessment rate, divided by 1,000, times the mills. Here is that math with the school and local pieces kept separate.
- School assessed value: $450,000 x 7.05% = $31,725
- Local assessed value: ($450,000 minus $45,000) x 6.8% = $27,540
- Tax on each piece: assessed value x mills / 1,000
| Line (ILLUSTRATIVE ONLY) | Mills | Without district | With 63.631-mill district |
|---|---|---|---|
| School District 49 (school value $31,725) | 45.649 | $1,448 | $1,448 |
| County, city, library, water conservancy (local value $27,540) | 13.654 | $376 | $376 |
| Metro district (local value $27,540) | 63.631 | $0 | $1,752 |
| Annual total | 59.303 / 122.934 | $1,824 | $3,577 |
| Monthly equivalent | about $152 | about $298 |
This is an illustration, not a tax bill or an estimate for any real parcel. It applies the 2026 assessment rates to the mills certified for tax year 2025, because 2026 levies are not certified until December. Your real bill depends on your assessed value, your exact tax area, and the levies certified for the year.
A lower-levy district changes the picture. At Banning Lewis Ranch Metro District No. 3's 39.471 mills, the same house would add about $1,087 a year instead of $1,752. That spread is why two similar houses a few streets apart can draw different reactions from buyers.
What Must You Disclose When Selling a House in a Metro District?
When selling a house in a metro district, you must give the buyer Colorado's bold-faced special taxing district warning, and for most newer districts the district's official website. These are statutory duties on the seller, separate from the condition questions on the standard seller's property disclosure form.
The special taxing district warning (every resale)
Every Colorado contract for the sale of residential real property must contain a bold-faced notice in substantially the statutory form (C.R.S. 38-35.7-101). It reads in part:
"SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS."
The notice tells buyers to check with the county treasurer and review the certificate of taxes due. The obligation sits on the seller. If you fail to provide it, the buyer has a claim against you "for all damages to the purchaser resulting from such failure plus court costs."
The district website (districts organized on or after January 1, 2000)
Since January 1, 2024, a seller of a house inside a metro district organized on or after January 1, 2000 must give the buyer the district's official website (C.R.S. 38-35.7-111). It goes on the Colorado Real Estate Commission's seller's property disclosure or another concurrent writing. SB23-110 added this section.
The new-construction disclosure (not a typical resale)
C.R.S. 38-35.7-110 requires a much longer package: the district's debt limits, its maximum debt service mill levy, its operating levy, and an estimate of the buyer's district taxes. It applies only to a "newly constructed residence" that has not previously been sold to its intended occupant. A second owner reselling a house generally falls outside it.
What the district records on its own
Each special district must record a public disclosure document and a boundary map with the county clerk and recorder (C.R.S. 32-1-104.8). That duty belongs to the district, not the seller. The statute also says a missing filing does not create a title defect.
The special taxing district notice is required in every residential sale contract, including a sale to a cash buyer. Selling as-is changes who handles repairs. It does not change what Colorado law requires you to disclose. For a broader look at when taxes go unpaid, see our guide to the Colorado property tax lien sale and redemption clock.
What SB21-262 Changed for Metro Districts
SB21-262, signed June 28, 2021, added transparency rules for metro districts and created the new-construction tax disclosure (Colorado General Assembly, SB21-262). It took effect September 7, 2021. The parts that touch a Colorado Springs seller:
- Official websites: Metro districts must keep an official, public website and update it each year.
- Buyer disclosure: Starting January 1, 2022, sellers of newly constructed residences in a metro district must give buyers the district's debt details and a tax estimate before signing.
For a resale seller, the practical effect is that buyers can now find a district's budget, levy, and notices online. A buyer who does homework will see the same numbers you see.
Why a Higher Tax Bill Shrinks a Financed Buyer's Loan
A higher property tax bill shrinks a financed buyer's loan because lenders count taxes in the monthly housing payment that sits inside the buyer's debt-to-income ratio. For loans run through Desktop Underwriter, Fannie Mae's maximum allowable DTI is 50%. For manually underwritten loans it is 36%, or up to 45% with qualifying credit and reserves (Fannie Mae Selling Guide B3-6-02, April 2025).
The housing payment in that math is PITIA: principal, interest, taxes, insurance, and association dues. Every dollar of property tax uses a dollar of the buyer's allowed payment. That dollar is no longer available for loan principal.
The illustrative math
In the table above, the district adds about $146 a month. At an illustrative 30-year fixed rate of 6.5%, each $1,000 borrowed costs about $6.32 a month in principal and interest. That $146 would otherwise support roughly $23,000 of additional loan.
A buyer already near the DTI ceiling has three choices. They can bring more cash, look at a cheaper house, or shop outside the district. That is how a levy narrows the pool of financed buyers who can say yes at a given price.
The other side of the ledger
This effect is real, but it is not the whole story. Comparable sales inside the same subdivision usually carry the same district line, so local prices often already reflect it. Districts also fund parks, trails, and recreation centers that buyers value. The effect bites hardest when your house competes with similar houses outside any district.
For current price and inventory trends, see our Colorado Springs housing market 2026 analysis.
Your Options for Selling a House in a Metro District
Your main options for selling a house in a metro district are a traditional listing, a listing with buyer concessions, holding the house as a rental, or a direct cash sale. Each one handles the district levy differently. None of them removes it, because the levy stays with the land.
| Option | How the district levy affects it | Seller costs and effort | Fits best when |
|---|---|---|---|
| List with an agent | Financed buyers must qualify with the levy in their payment | Commission, prep, showings, inspection and appraisal contingencies | The house shows well and you have time |
| List with buyer concessions | A rate buydown can offset part of the tax line for a qualifying buyer | Listing costs plus the concession itself | Buyers like the house but stall on the payment |
| Hold and rent | You keep paying the levy; rent has to cover it | Management, vacancy, repairs, landlord duties | You want to keep the house as an investment |
| Direct cash sale | No loan approval, so no debt-to-income limit | No commission, no repairs, no showings; disclosures and proration still apply | You want a set closing date and no listing |
The honest fit
If your house is in good shape and you have time, listing may net you more, even with the district levy. Many buyers in newer east-side and north-side subdivisions expect a metro district line. If a cash sale is not your best move, we will say so.
A direct cash sale fits when you want certainty over the last dollar. That includes a move on a deadline, a house that needs work, or a tenant in place. Landlords can read our guide to selling a rental house with tenants in Colorado Springs. Our comparison of the best ways to sell your house for cash in Colorado Springs lays out the other routes.
How Propcash looks at a metro district house
Propcash is a direct cash homebuyer, so we buy the house ourselves. We make one offer based on local market data and show you how we got to the number, including how comparable district houses have sold. You can request a cash offer and compare it against a listing. Cash sales can close in as few as 7 days, and you pick the closing date.
There are no fees or commissions, and you can sell as-is. Our offer stands, there is no aggressive follow-up, and there is no obligation. Learn more on our Colorado Springs cash home buyer page.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
How do I know if my Colorado Springs house is in a metro district?
Look at your El Paso County property tax statement, which lists every taxing entity that levies on the parcel. A metropolitan district appears as its own line with its own mill levy. You can also look up the parcel on the El Paso County Assessor or Treasurer site, or check the special district public disclosure document recorded with the county clerk and recorder.
Do metro district taxes go away when I sell my house?
Metro district taxes do not go away when you sell. A metro district mill levy attaches to the land inside the district's boundaries, so it stays with the house and passes to the next owner. At closing, the current year's taxes are typically prorated so each owner pays for the time they held the house. The buyer then pays the district levy going forward, along with the county, city, and school levies.
What does a Colorado seller have to disclose about a metro district?
Every Colorado residential sale contract must carry the bold special taxing district warning in C.R.S. 38-35.7-101. A seller who fails to provide it can owe the buyer damages plus court costs. If the district was organized on or after January 1, 2000, the seller also gives the buyer the district's official website under C.R.S. 38-35.7-111. The longer estimate-of-taxes disclosure in C.R.S. 38-35.7-110 applies to newly constructed residences, not to an ordinary resale.
How much do metro district taxes add in Colorado Springs?
Metro district taxes in Colorado Springs depend on the district. On the El Paso County Treasurer's 2025 levy schedule, Banning Lewis Ranch Metro District No. 4 levied 63.631 mills and Gold Hill Mesa Metro District No. 2 levied 50.944 mills. Several Banning Lewis Ranch districts levied zero. On an illustrative $450,000 house under 2026 assessment rules, 63.631 mills works out to roughly $1,750 a year.
Can a metro district make my house harder to sell?
It can narrow the pool of financed buyers, because lenders count property taxes in the monthly payment used for debt-to-income limits. A higher tax line leaves less room for loan principal at the same income. Comparable sales in the same subdivision usually carry the same district levy, though, so local prices often already reflect it.
Can I sell a Colorado Springs metro district house for cash as-is?
You can sell a Colorado Springs metro district house for cash as-is. A direct cash buyer does not need a loan approval, so a debt-to-income limit never enters the deal, and the house can be sold as-is with no repairs or showings. The statutory special district disclosures and the tax proration still apply at closing. Propcash is a direct cash homebuyer that makes one data-backed offer and shows the reasoning behind the number.
Data Sources: C.R.S. Title 32 (32-1-103, 32-1-104.8); C.R.S. Title 38 (38-35.7-101, 110, 111); SB21-262; El Paso County Treasurer, 2025 Mill Levies; El Paso County Assessor, 2026 rates; Colorado Division of Property Taxation; City of Colorado Springs; Banning Lewis Ranch Metropolitan Districts; Fannie Mae Selling Guide. All tax figures are illustrative. Propcash is a direct cash homebuyer, not a law firm or tax advisor. Consult a Colorado attorney or tax professional about your parcel.