Colorado § 38-35.7-110 - Disclosure - estimated future property taxes for residences within the boundaries of a metropolitan district - rules - definition.

§ 38-35.7-110. Disclosure - estimated future property taxes for residences within the boundaries of a metropolitan district - rules - definition.

(1) Repealed.

(2) On and after January 1, 2022, an owner of residential real property that is located within the boundaries of a metropolitan district organized on or after January 1, 2000, that sells the property, concurrently with or prior to the execution of a contract to sell the property, shall provide to the purchaser of the property:

(a) A paper copy, electronic copy, or a website page link to the notice to electors required by section 32-1-809 (1) as most recently prepared and filed by the metropolitan district;

(b) A paper copy, electronic copy, or a website page link to the service plan or statement of purpose of the metropolitan district, including any amendments to the service plan, as filed with the division of local government in the department of local affairs;

(c) A statement in writing disclosing that:

(I) Pursuant to its service plan, the metropolitan district has authority to issue up to ____ dollars of debt and, if applicable, that the debt of the district may be repaid through ad valorem property taxes, from a debt service mill levy on all taxable property of the district, or any other legally available revenues of the district;

(II) The maximum debt service mill levy the metropolitan district is permitted to impose under the service plan is ____ mills or, if no maximum debt service mill levy is specified in the service plan, a statement that there is no maximum debt service mill levy. If applicable, the statement must also disclose whether the debt service mill levy cap may be adjusted due to changes in the constitutional or statutory method of assessing property tax or in the assessment ratio, or by amendments to the service plan or voter authorizations.

(III) In addition to imposing a debt service mill levy, the metropolitan district is also authorized to impose a separate mill levy to generate revenues for general operating expenses. If applicable, the statement must also disclose whether the amount of the general operating expenses mill levy may be increased as necessary, separate and apart from the debt service mill levy cap. In the alternative, if the service plan provides for the aggregate mill levy cap for debt service and general operating expenses combined, the statement must address the applicable aggregate mill levy cap.

(IV) The metropolitan district may also rely upon various other revenue sources authorized by law to offset its expenses of capital construction and general operating expenses. Pursuant to Colorado law, the district may impose fees, rates, tolls, penalties, or other charges as provided in title 32. The statement must include that a current fee schedule, if applicable, is available from the metropolitan district.

(V) Actions by the metropolitan district pursuant to its authority to issue debt, impose mill levies, and impose fees, rates, tolls, penalties, or other charges may increase costs to residents living in the metropolitan district;

(d) An estimate of the dollar amount of property taxes levied by the metropolitan district that are applicable to the property for collection during the year in which the sale occurs, which estimate must include any debt service mill levies that are specified in subsection (2)(c)(II) of this section and any mill levies for general operating expenses that are specified in subsection (2)(c)(III) of this section, shown both as the total mill levy as well as the total dollar amount that could be collected based upon the purchase price of the property, the residential assessment rate, and mill levies that are in effect in the district at the time of the sale; and

(e) A copy of the most current certificate of taxes due or tax statement issued by the county treasurer that is applicable to the property as an estimate of the sum of additional mill levies levied by other taxing entities that overlap the property in which the newly constructed residence is located.

(3) In disclosing an estimate of property taxes for purposes of satisfying subsection (2)(d)(I) of this section, the seller shall calculate the estimate based upon application of the following assumptions:

(a) The purchase price is considered to be the value of the real property including the newly constructed residence as reflected in the contract to purchase the property;

(b) The ratio of valuation for assessment is the same as the residential real property assessment ratio set forth in section 39-1-104.2 for the property tax year in which the sale occurs; and

(c) The mill levies are the same as those levied by all taxing entities that are applicable to the property for the property tax year in which the sale occurs; except that, if the seller has actual knowledge that the total mill levies will change in the next property tax year, the seller shall use the updated information in making the calculation.

(4) Along with the estimate required by subsection (2) of this section, the seller shall include, in bold-faced type that is clearly legible, the following statement:

This estimate only provides an illustration of the amount of the new property taxes that may be due and owing after the property has been reassessed and, in some instances, reclassified as residential property. This estimate is not a statement of the actual and future taxes that may be due. First year property taxes may be based on a previous year's tax classification, which may not include the full value of the property and, consequently, taxes may be higher in subsequent years. A seller has complied with this disclosure statement as long as the disclosure is based upon a good-faith effort to provide accurate estimates and information.

(5) A seller is deemed to have complied with this section as long as the disclosures required by this section are based upon a good-faith effort to provide accurate estimates and information.

Source: L. 2021: Entire section added, (SB 21-262), ch. 368, p. 2430, § 6, effective September 7. L. 2022: (2)(e) amended, (SB 22-164), ch. 155, p. 984, § 1, effective May 6. L. 2025: (1) repealed, IP(2) and (2)(d) amended, and (2)(c)(V) added, (HB 25-1219), ch. 290, p. 1491, § 4, effective August 6.