Reduce Transportation Costs Imposed by Government
SB117 is a broad transportation-cost reduction bill that repeals several state and enterprise fees tied to motor fuel, rides booked through transportation network companies, short-term motor vehicle rentals, and new tire sales. Specifically, it eliminates the road usage fee on gasoline and special fuel, the bridge and tunnel impact fee on special fuel, the state fee on short-term rentals, the per-ride fees on car share and other transportation network company rides, and the waste tire enterprise fee. Because the waste tire fee is the sole revenue source for the waste tire management enterprise, the bill also repeals that enterprise and related statutory provisions.
The bill also restructures or repeals multiple fee-collection and fund-distribution provisions across Colorado law, including provisions governing the clean fleet enterprise, the statewide bridge and tunnel enterprise, the high-performance transportation enterprise, and the nonattainment area air pollution mitigation enterprise. In place of the repealed reformulated-gasoline-related revenue stream, it requires the nonattainment area air pollution mitigation enterprise to create a reformulated gasoline cost stabilization rebate program by January 1, 2026, for vehicle owners in counties where federal law requires reformulated gasoline. The bill directs that a portion of annual fee revenue be dedicated to that rebate program.
In practical terms, the bill would reduce or eliminate several charges currently embedded in fuel, ride-hailing, rental-car, and tire purchases, and it would change how transportation-related enterprises are funded and administered. It also amends tax and fee collection statutes to conform to the repeal of those charges, including electronic filing rules, sales tax treatment of fee collection, and revenue-crediting provisions for the highway users tax fund and other enterprise funds. The effective date is July 1, 2025.
The general sentiment reflected in the bill title and sponsor list is strongly pro-consumer and cost-reduction oriented, with the bill framed as a way to lower transportation costs imposed by government. However, the committee vote history suggests the proposal faced resistance: while two amendments were adopted unanimously, a motion to refer the bill to Appropriations failed and the bill was then postponed indefinitely by a narrow 3-2 vote. That outcome indicates limited committee support despite some willingness to modify the bill.
The main points of contention appear to be the loss of dedicated revenue for transportation, environmental mitigation, and waste tire management programs versus the bill’s goal of reducing fees for motorists, riders, renters, and consumers. Opponents likely focused on the fiscal and programmatic consequences of repealing enterprise fees and dismantling fee-supported enterprises, while supporters emphasized relief from layered charges on fuel, rides, rentals, and tires. The bill also shifts some of the burden of reformulated gasoline price differences into a rebate program, which may have been viewed as a partial offset rather than a full replacement for the repealed fees.
SB117 would substantially amend Colorado statutes governing transportation-related fees and enterprise funds by repealing several fee authorities and associated revenue streams, including provisions in titles 25, 30, 39, 40, and 43. It would eliminate the road usage fee, bridge and tunnel impact fee, clean fleet per-ride fee, air pollution mitigation per-ride fee, daily vehicle rental fee, and waste tire enterprise fee, and it would repeal or revise the statutory structures that support the clean fleet, waste tire management, and related enterprise programs. The bill also changes tax administration provisions to remove references to the repealed fees and to conform collection, filing, and crediting rules to the new framework.
The bill would also create a new reformulated gasoline cost stabilization rebate program within the nonattainment area air pollution mitigation enterprise, requiring rebates for qualifying vehicle owners in reformulated-gasoline counties and dedicating a portion of annual fee revenue to that purpose. Overall, the bill would reduce dedicated funding for several existing transportation, environmental, and waste-management programs while redirecting one enterprise toward consumer rebates tied to gasoline price differences.
The bill is presented as a fee-reduction measure intended to lower transportation costs for consumers and businesses, and its sponsor list suggests support from members aligned with that objective. At the same time, the committee history shows the bill did not advance: a referral motion failed and the bill was postponed indefinitely after a close vote. That pattern suggests the concept had some support for amendment but not enough consensus to move forward. Overall, the sentiment appears mixed, with clear support for cost relief but significant concern about the consequences of repealing multiple dedicated fees and enterprise programs.
The central dispute is between reducing user-facing transportation costs and preserving revenue for transportation infrastructure, environmental mitigation, and waste tire management. Supporters of the bill likely view the fees as layered government-imposed costs that raise prices on gasoline, rides, rentals, and tires, while opponents likely argue that those fees fund specific services, projects, and enterprises that would lose financing if the bill were enacted. The repeal of the waste tire enterprise, the road usage fee, and the bridge and tunnel impact fee are especially consequential because they eliminate dedicated funding sources rather than simply reducing rates. The new reformulated gasoline rebate program may also be contentious because it replaces one revenue mechanism with a targeted subsidy, raising questions about adequacy, administration, and whether it offsets the broader revenue losses.