Senate Bill 25-258 Introduced

A Bill for an Act

• Page 1, Line 101Concerning a temporary reduction in the road safety

• Page 1, Line 102surcharge, and, in connection therewith, modifying the

• Page 1, Line 103allocation of revenues from the surcharge to increase

• Page 1, Line 104allocations to counties and municipalities during the

• Page 1, Line 105temporary reduction.

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. The bill temporarily reduces by $3.70 the road safety surcharge for each vehicle class for any registration period that begins on or after January 1, 2026, but before January 1, 2028. Revenue from the road safety surcharge is credited to the highway users tax fund and allocated to the state highway fund, counties, and municipalities. The bill adjusts this allocation for the time period of the temporary reduction in the road safety surcharge by increasing the county and municipal shares as follows:

• 56% to the state highway fund (reduced from 60%);
• 24% to counties (increased from 22%); and
• 20% to municipalities (increased from 18%).

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 43-4-205, amend (6.3) as follows:

• Page 2, Line 343-4-205.  Allocation of fund - repeal. (6.3) (a)  Revenues from

• Page 2, Line 4the surcharges, fees, and fines credited to the highway users tax fund

• Page 2, Line 5pursuant to section 43-4-804 (1) shall must be allocated and expended in

• Page 2, Line 6accordance with the formula specified in paragraph (b) of subsection (6) subsection (6)(b) of this section.

• Page 2, Line 7(b) (I)  Notwithstanding any provision of this subsection

• Page 2, Line 8(6.3) to the contrary, revenues from the surcharges, fees, and

• Page 2, Line 9fines credited to the highway users tax fund pursuant to section

• Page 2, Line 1043-4-804 (1) for any registration period that begins on or after

• Page 2, Line 11January 1, 2026, but before January 1, 2028, may be expended

• Page 2, Line 12only for improvements to highways within the state, including

• Page 2, Line 13new construction, safety improvements, maintenance, and

• Page 2, Line 14capacity improvements, and for other transportation-related

• Page 2, Line 15projects to the extent authorized by law, and may not be

• Page 2, Line 16expended for administrative purposes. Such revenue is allocated as follows:

• Page 2, Line 17(A)  Fifty-six percent of such revenue must be paid to the

• Page 3, Line 1state highway fund and must be expended as provided in section 43-4-206;

• Page 3, Line 2(B)  Twenty-four percent of such revenue must be paid to

• Page 3, Line 3the county treasurers of the respective counties, subject to

• Page 3, Line 4annual appropriation by the general assembly, and must be allocated and expended as provided in section 43-4-207; and

• Page 3, Line 5(C)  Twenty percent of such revenue must be paid to the

• Page 3, Line 6cities and incorporated towns, subject to annual appropriation

• Page 3, Line 7by the general assembly, and must be allocated and expended as provided in section 43-4-208 (2)(b) and (6)(a).

• Page 3, Line 8(II)  This subsection (6.3)(b) is repealed, effective July 1, 2028.

• Page 3, Line 9SECTION 2.  In Colorado Revised Statutes, 43-4-804, amend (1)(a)(I) introductory portion; and add (1)(a)(IX) as follows:

• Page 3, Line 1043-4-804.  Highway safety projects - surcharges and fees -

• Page 3, Line 11crediting of money to highway users tax fund - definition. (1)  The

• Page 3, Line 12following surcharges, fees, and fines shall be collected and credited to the

• Page 3, Line 13highway users tax fund created in section 43-4-201 (1)(a) and allocated

• Page 3, Line 14to the state highway fund, counties, and municipalities as specified in section 43-4-205 (6.3):

• Page 3, Line 15(a) (I)  A road safety surcharge, which, except as otherwise

• Page 3, Line 16provided in subsections (1)(a)(III) and (1)(a)(VI) of this section, is

• Page 3, Line 17imposed for any registration period that commences on or after July 1,

• Page 3, Line 182009, upon the registration of any vehicle for which a registration fee

• Page 3, Line 19must be paid pursuant to part 3 of article 3 of title 42 and is also imposed

• Page 3, Line 20upon any item of special mobile machinery that is covered by a

• Page 3, Line 21registration exempt certificate issued by the department of revenue in

• Page 4, Line 1accordance with section 42-3-107 (16)(g). Except as otherwise provided

• Page 4, Line 2in subsections (1)(a)(IV), (1)(a)(V), and (1)(a)(VIII), and (1)(a)(IX) of this section, the amount of the surcharge is:

• Page 4, Line 3(IX)  For any registration period that begins on or after

• Page 4, Line 4January 1, 2026, but before January 1, 2028, the amount of each

• Page 4, Line 5road safety surcharge imposed pursuant to subsection (1)(a)(I) of this section is reduced by three dollars and seventy cents.

• Page 4, Line 6SECTION 3.  Act subject to petition - effective date. This act

• Page 4, Line 7takes effect at 12:01 a.m. on the day following the expiration of the

• Page 4, Line 8ninety-day period after final adjournment of the general assembly; except

• Page 4, Line 9that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 4, Line 10of the state constitution against this act or an item, section, or part of this

• Page 4, Line 11act within such period, then the act, item, section, or part will not take

• Page 4, Line 12effect unless approved by the people at the general election to be held in

• Page 4, Line 13November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.