New Taxing Districts and CTDs: A Hidden Risk for Colorado Closings

🏘️ Why New Taxing Districts Matter

Colorado’s rapid growth has led to the creation of new special taxing districts—from metro districts to fire protection zones and water authorities. These districts often impose additional assessments that may not be immediately reflected on the Certificate of Taxes Due (CTD), especially if the district was recently formed or annexed.

For title companies, missing these assessments can result in undisclosed liens, escrow shortfalls, or post-closing disputes.

🔍 How These Issues Arise

New taxing districts may:

• Be approved by voters but not yet fully implemented.
• Have pending mill levies that aren’t reflected in current tax bills.
• Be recorded separately from county property tax systems.

These factors can lead to CTDs that appear clean but omit future or pending obligations.

📑 What Title Companies Should Do

To protect your transactions:

• Cross-check CTDs with county assessor and treasurer records.
• Request confirmation from the county about any newly formed districts.
• Include disclosure language in the title commitment if district formation is pending.

⚖️ Legal and Risk Considerations

Colorado law requires disclosure of known assessments, but new districts may not yet be fully documented. Title companies should:

• Review recent ballot measures or annexation filings.
• Confirm whether the district has legal authority to levy taxes.
• Escrow funds if assessments are anticipated but not yet billed.

✅ Final Thoughts: Don’t Let New Districts Create Old Problems

As Colorado continues to grow, so does the complexity of its property tax landscape. By proactively identifying new taxing districts and using COCRS’s tools, title companies can ensure accurate CTDs and smoother closings.

🛠️ How COCRS Can Help

Need help verifying tax district data or uncovering hidden assessments?
Contact COCRS today—we’ll handle the research so you can close with confidence.