There has been some confusion among residents about an article entitled "Tax Rate Reduced." That article reported that the CPN Metro District had reduced the property tax rate by 25%, and gave an example of the impact of the rate reduction, using a home valued at $300,000.

Now, residents have received their property tax statements for the Year 2002 and have asked why their tax bill did not match the formula specified in the story.

The reason for that is your actual tax bill reflects the combined effect of the tax rate as well as the assessed value of your home.

Every two years, the Douglas County Assessor re-assesses the value of your home, as required by Colorado law. 2001 was a reassessment year. Happily, our homes' values have been increasing, which is a good thing-in almost all situations except tax bills!

The example cited in the last issue calculated the savings assuming the same home value both years. When you compare your actual property tax bills for 2001 and 2002, you will note that you home value has increased. If the Metro District had not reduced the tax rate, you would have had a tax increase due to the higher property values. But because the tax rate went down by 25%, most homeowners will find that this more than offset the property value increase, and their Metro District tax dollars are lower in 2002 than they were in 2001.

In fact, most homeowners will find that their total tax bill for 2002 is lower than in 2001, despite the home value increase. The Metro District's tax reduction was large enough to offset the effect of the property value increase on the tax dollars for the other major government units, such as Douglas County and the School District.

The Metro District was able to make this significant tax reduction because of the District's improving financial picture, as noted on page 16. The District's Board of Directors has indicated that they intend to continue their efforts to improve the District's finances, which would then allow further reductions in the tax rate, as well as the District's debt.

If you would like more information on this subject, please contact CPN Metro District Manager Judy Dahl at (303) 688-8550.

For the 2001 tax bill, a home was valued at $269,549. The property value increased, so the 2002 tax bill is based on the new value, $325,461. If the CPN Metro District tax rate had not been decreased, the actual tax dollars would have would have increased by $476, consistent with the formula shown in the last issue of this newsletter. The combined effect of the property value increase with the Metro District tax rate decrease, this homeowner is paying $250 less in Metro District taxes this year, despite the property value increase.

The Metro District was the only major government unit that reduced tax dollars this year. Douglas County kept the same tax rate, so the tax dollars went up. The School District lowered its tax rate by 7%, but most homeowners' property values increased by more than this percentage, so the tax dollars are higher.

But despite these tax dollar increases, the total property tax bill for 2002 was lower than the 2001 tax bill - due primarily to the CPN Metro District's tax reduction.

Castle Pines North Homeowners Association
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