Colorado collecting higher gasoline tax

Total to be 3 cents

BY JESSE PAUL THE COLORADO SUN

Colorado began collecting a 2-cent-per-gallon fee on gasoline purchases on April 1.

Revenue from the fee, which increases to 3 cents per gallon on July 1, will go toward addressing the state’s multibillion-dollar transportation project backlog. e charge was imposed through a bill passed by the legislature in 2021 that also added fees on deliveries, rideshare rides and electric vehicles. e gas fee was originally supposed to begin in July 2022, but the legislature delayed the start until April 1, at a cost of $45 million, because of high gas prices. A year ago, the average cost of a gallon of regular gas in Colorado was $3.97. is week, it was hovering around $3.47. e gas fee is set to increase gradually by 1 cent per year until it reaches

Fuel prices reached an all-time high in Colorado in June 2022, when a gallon of regular gasoline averaged $4.92 and diesel was at $5.54 a gallon, according to AAA.

8 cents per gallon in July 2028. In July 2032, the fee will be adjusted annually based on in ation.

Other fees imposed by the bill include:

• A 27-cent fee on deliveries

• A 30-cent fee on rideshares e fuel and road-usage fees are the subject of a lawsuit led in Denver District Court by conservatives who argue the charges were illegally imposed. Colorado’s Taxpayer’s Bill of Rights requires that voters ap- prove all tax increases, but fees can be imposed by the legislature as long as the revenue goes to a set purpose. is story is from e Colorado Sun, a journalist-owned news outlet based in Denver and covering the state. For more, and to support e Colorado Sun, visit coloradosun. com. e Colorado Sun is a partner in the Colorado News Conservancy, owner of Colorado Community Media.

• A 4-cent-per-gallon fee on diesel fuel. Like the gas fee, the diesel fee increases annually — but by 2 cents — until it reaches 16 cents in 2028.

Colorado also collects a 22-cent tax on each gallon of gas sold. e state’s gas tax is among the lowest in the country.