Colorado now collecting 2-cent-per-gallon gas fee

‘Rate payer revolt’ demands end to dependence on gas-ﬁred energy

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. In recent weeks, gas prices have hovered around $3.50.

e gas fee is set to increase gradually by 1 cent per year until it reaches 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 Den-

- 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.

As planned, the State of Colorado will be collecting an added 2 cents per gallon of gas. The collections started April 1. SHUTTERSTOCK ver District Court by conservatives who argue the charges were illegally imposed. Colorado’s Taxpayer’s Bill of Rights requires that voters approve all tax increases, but fees can be imposed by the legislature as long as the revenue goes to a set purpose. 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. 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.

Thu 5/04

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