Update: Gov. Polis signed the measure into law on June 18.
What happened: Colorado lawmakers voted June 2 to send a $5 billion transportation funding bill to Gov. Jared Polis (D). The legislation could:
- Gradually increase state motor fuel taxes by 8 cents-per-gallon,
- Institute a 27-cent fee on online delivery purchases,
- Create new fees for electric motor vehicle registrations and vehicle rental fees, and
- Add a 30-cent fee on most rideshare trips.
The measure would index these fees to changes in inflation as measured by the National Highway Construction Cost Index. In addition to the new recurring revenue, the bill also includes $380 million in federal relief money from the American Rescue Plan and $170 million in a one-time General Fund transfer.
Why it matters: Colorado faces a $9 billion transportation project backlog due to competing legislative priorities and conflicting budget forecasts. In November 2019 voters rejected competing ballot measures to increase transportation investment. Colorado last increased it’s gas tax in 1991.
What’s next: The bill now goes to Gov. Polis for final approval. If approved, the revenue would fund transportation projects over the next 10 years. Anti-tax organizations have stated their intent to challenge the new fees on the 2022 ballot.