Temporarily Reduce Road User Charges

Senate Bill 21-260, concerning the sustainability of the transportation system in Colorado:

• Created phased-in road usage fees on gasoline and diesel that increase from 2 cents per gallon for state fiscal year (FY) 2022-23, when they are first imposed, to 8 cents per gallon for FYs 2028-29 through 2031-32, and thereafter continue to increase to account for inflation; and
• Temporarily reduced the amount of the road safety surcharge, which is imposed annually when a motor vehicle is registered by $11.10 for registration periods beginning in 2022 and $5.55 for registration periods beginning in 2023.

The act delays the initial imposition of the road usage fees from July 1, 2022, to April 1, 2023, and increases the amount of the reduction in the road safety surcharge for registration periods beginning in 2023 from $5.55 to $11.10. The act also requires transfers to be made on July 1, 2022, to hold the department of transportation, counties, and municipalities harmless from the reductions in road usage fee and road safety surcharge revenue as follows:

• $47.1 million from the general fund to the state highway fund; and
• $31.4 million from the general fund to the highway users tax fund.

For implementation of the act, $5,850 is appropriated from the general fund to the department of revenue for use by the division of motor vehicles.

(Note: This summary applies to this bill as enacted.)