Senate Bill 25-320 Introduced

A Bill for an Act

• Page 1, Line 101Concerning commercial motor vehicle transportation, and,

• Page 1, Line 102in connection therewith, reinstating and extending the

• Page 1, Line 103sales and use tax exemption for certain heavy-duty

• Page 1, Line 104motor vehicles, components, and parts, and adjusting

• Page 1, Line 105the bridge and tunnel impact fee schedule for state

• Page 1, Line 106fiscal years 2025-26 through 2027-28.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Joint Budget Committee. Prior to January 1, 2025, certain heavy-duty motor vehicles, vehicle power sources, and parts for vehicle power source conversion which met specified federal or state law requirements related to greenhouse gas emission reduction were exempt from state sales and use tax. Section 1 of the bill reinstates the tax exemption for the period beginning on and after August 1, 2025, but prior to January 1, 2029, and clarifies the intent of the tax expenditure.

Section 2 increases the amount of the bridge and tunnel impact fee (fee) to be imposed per gallon of special fuel by the statewide bridge and tunnel enterprise from $0.05 per gallon to $0.07 per gallon for state fiscal year 2025-26, from $0.06 per gallon to $0.07 per gallon for state fiscal year 2026-27, and from $0.07 per gallon to $0.08 per gallon for state fiscal year 2027-28.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-26-719, amend

• Page 2, Line 3(1)(a) introductory portion, (1)(c), (2)(b)(I) introductory portion, and (2)(b)(III); repeal (2)(b)(I)(A); and add (1.5) as follows:

• Page 2, Line 439-26-719.  Motor vehicles - tax preference performance

• Page 2, Line 5statement - definitions - repeal. (1) (a)  Prior to January 1, 2025, and on

• Page 2, Line 6and after August 1, 2025, but prior to January 1, 2029, there shall

• Page 2, Line 7be exempt from taxation under the provisions of part 1 of this article 26

• Page 2, Line 8the sale of any motor vehicle, power source for any motor vehicle, or parts used for converting the power source for any motor vehicle, if:

• Page 2, Line 9(c)  This subsection (1) is repealed, effective December 31, 2028 December 31, 2032.

• Page 2, Line 10(1.5) (a)  In accordance with section 39-21-304 (1), which

• Page 2, Line 11requires each bill that creates a new tax expenditure or

• Page 2, Line 12extends an expiring tax expenditure to include a tax preference

• Page 2, Line 13performance statement as part of a statutory legislative

• Page 2, Line 14declaration, the general assembly finds and declares that the

• Page 2, Line 15purposes of the tax exemption provided in this section are, by

• Page 2, Line 16providing an exemption from taxation pursuant to the provisions of part 1 or part 2 of this article 26:

• Page 3, Line 1(I)  To provide tax relief for certain businesses and

• Page 3, Line 2individuals, specifically businesses and individuals that

• Page 3, Line 3purchase, store, use, or consume low-emitting heavy motor

• Page 3, Line 4vehicles, power sources for such motor vehicles, or parts used

• Page 3, Line 5for converting the power source of motor vehicles to a low-emitting power source; and

• Page 3, Line 6(II)  To induce certain designated behavior by taxpayers,

• Page 3, Line 7specifically the sale, purchase, storage, use, and consumption of

• Page 3, Line 8low-emitting heavy motor vehicles, power sources for such

• Page 3, Line 9motor vehicles, and parts used for converting the power sources of motor vehicles to a low-emitting power source.

• Page 3, Line 10(b)  The general assembly and the state auditor shall

• Page 3, Line 11measure the effectiveness of the exemption in achieving the

• Page 3, Line 12purpose specified in subsection (1.5)(a) of this section based on the number and value of exemptions claimed.

• Page 3, Line 13(2)  The following shall be exempt from taxation under the provisions of part 2 of this article 26:

• Page 3, Line 14(b) (I)  Prior to January 1, 2025, and on and after August 1,

• Page 3, Line 152025, but prior to January 1, 2029, the storage, use, or consumption

• Page 3, Line 16of a motor vehicle, power source for a motor vehicle, and parts used for converting the power source of a motor vehicle, if:

• Page 3, Line 17(A)  For sales occurring on or before June 30, 2014, the gross

• Page 3, Line 18vehicle weight rating of the motor vehicle is greater than ten thousand

• Page 3, Line 19pounds and if the motor vehicle, power source, or parts used for

• Page 3, Line 20converting the power source are certified by the United States

• Page 3, Line 21environmental protection agency or any state as provided in the federal

• Page 4, Line 1"Clean Air Act" as meeting an emission standard equal to or more stringent than the low-emitting vehicle emission standard;

• Page 4, Line 2(III)  This subsection (2)(b) is repealed, effective December 31, 2028 December 31, 2032.

• Page 4, Line 3SECTION 2.  In Colorado Revised Statutes, 43-4-805, amend

• Page 4, Line 4(5)(g.5)(II)(F) and (5)(g.5)(II)(G); and repeal (5)(g.5)(II)(D) and (5)(g.5)(II)(E) as follows:

• Page 4, Line 543-4-805.  Statewide bridge enterprise - creation - board -

• Page 4, Line 6funds - powers and duties - legislative declaration - definitions. (5)  In

• Page 4, Line 7addition to any other powers and duties specified in this section, the bridge enterprise board has the following powers and duties:

• Page 4, Line 8(g.5) (II)  For each gallon of special fuel acquired, sold, offered for

• Page 4, Line 9sale, or used in this state during state fiscal years 2022-23 through

• Page 4, Line 102031-32, the bridge enterprise shall impose the bridge and tunnel impact fee in an amount of up to:

• Page 4, Line 11(D)  Five cents per gallon for state fiscal year 2025-26;

• (E)  Six cents per gallon for state fiscal year 2026-27;

• Page 4, Line 12(F)  Seven cents per gallon for state fiscal year 2027-28 years 2025-26 and 2026-27; and

• Page 4, Line 13(G)  Eight cents per gallon for state fiscal years 2028-29 years 2027-28 through 2031-32.

• Page 4, Line 14SECTION 3.  Safety clause. The general assembly finds,

• Page 4, Line 15determines, and declares that this act is necessary for the immediate

• Page 4, Line 16preservation of the public peace, health, or safety or for appropriations for

• Page 4, Line 17the support and maintenance of the departments of the state and state institutions.