How Were Your Property Taxes Determined for 2025 (payable in 2026)?
How Were Your Property Taxes Determined for 2025 (payable in 2026)?
Introduction
The Fossil Ridge Metro District (FRMD) guided by the FRMD Board of Directors, seeks to help residents understand how their property taxes are determined for 2025, payable in 2026. Property Tax notices from Jefferson County were recently mailed to residents.
The main objectives of this narrative are to build awareness of how the 2026 Business Plan and Budget impacts the property tax determination process, and to provide a clear understanding of how property taxes are calculated for both FRMD and the broader Solterra community.
Business Plan and Budget
The process begins with the FRMD 2026 Business Plan, which outlines the district’s mission, vision, and values. This plan sets priorities and directions for the district, guiding the Board of Directors and District committees as they make decisions. Importantly, it also directs the budget, ensuring that financial planning aligns with the district’s goals.
The 2026 budget process is designed to support the objectives laid out in the business plan. Expenses are determined based on the district’s needs and estimates for 2026, with contingency reserves set aside for general expenses, landscaping, capital replacement and repairs, and debt service. Revenue comes from two main sources: quarterly fees and property taxes.
Transparency is a cornerstone of the process. The public budget review in 2025 included two workshops in August and September, followed by a board meeting in October to review draft budgets. The final approval happened at the December board meeting. Once approved, budgets are posted to Solterra Connect, and board meetings are held to review budget-to-actual quarterly variances.
How Property Taxes Are Calculated
Understanding Solterra resident property taxes requires familiarity with key terms:
- Assessed Value: This is the dollar value assigned to a home for tax purposes, determined by Jefferson County. It reflects the value of comparable properties in the area.
- Residential Assessment Rate (RAR): This is the percentage of the assessed value that is taxed and is recalculated regularly by the State Legislature. For 2025 taxes paid in 2026, the RAR is 7.05% for school jurisdictions and 6.25% for the remaining jurisdictions (including FRMD).
- Mill Levy: This is the tax rate applied to the net assessed value by a specific jurisdiction. One mill equals one dollar per $1,000 of net assessed value. The mill levy is calculated based on the revenue needs of each tax jurisdiction, and the total mill levy for a property is the sum of all applicable jurisdictions. For FRMD in 2025 (paid in 2026), the levy is 37.5 mills. The mill levy for FRMD was 36.5 mills in 2024 (paid in 2025).
2025 Mill Levy Breakdown
The total property tax mill levies for residents of Solterra in 2025, payable in 2026, totals 148.899 mills and is slightly higher than the previous year (147.152). This total includes assessments from Jefferson County (26.978), FRMD (37.5), City of Lakewood (4.711), Mount Carbon Metro District (20.00), Schools (44.349), West Metro Fire (13.79) and other entities. Notably, the FRMD mill levy makes up 25.2% of the total.
Example (From the Jefferson County Assessor’s Office)
Assume a Residential Property with an Actual Value of $700,000 and a Mill Levy of 100.000 mills. Because Residential Property uses split Assessment Rates, the assessed value is calculated separately for School Districts and for all other Local Government.
- Assessment calculation:
- $700,000 × 7.05% = $49,350 School Assessed Value
- $700,000 × 6.25% = $43,750 Local Government Assessed Value
- To calculate taxes, each assessed value is multiplied by the applicable portion of the Total Mill Levy (100.000 in this example). With the Mill Levy set at 44.349 for the School District, the Mill Levy for Local Government is calculated as the remainder after subtracting the School Mill Levy from the Total Mill Levy. (100.000 - 44.349 = 55.651 for this example). The Mill Levy is split as follows:
- School District: 44.349 mills
- Local Government: 55.651 mills
- Tax calculation:
- $49,350 × (44.349 ÷ 1,000) = $2,188.62 School Taxes
- $43,750 × (55.651 ÷ 1,000) = $2,434.73 Local Government Taxes
- Total Estimated Property Taxes:
$4,623.35
Closing
Helpful references include the Jefferson County Assessor Website (where you can find your specific property and the tax calculator) and the Solterra-Connect Website. This information is meant to be useful and instructive. It does not constitute tax advice.