HB 22-1351

HB 22-1351, which has been signed into law in Colorado, temporarily reduces road safety surcharges for vehicle registrations and delays the start of new road usage fees. For registration periods starting in 2022, the surcharge is reduced by $11.10, and for those beginning in 2023, it's cut from $5.55 to $11.10 as well. The bill also postpones a planned increase in gasoline and diesel taxes until April 1, 2023, and allocates funds from the general budget to transportation departments to offset any revenue loss due to these changes. This affects all drivers who register vehicles or pay for fuel in Colorado.

Official Summary

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.)

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