CO HB1157

On and after July 1, 2020, modifies specific ownership tax rates on motor vehicles, commercial trailers, and special mobile machinery less than 25 years old by extending tax brackets from 9 years to 24 years and reducing individual year rates (e.g., fifth year from 0.45% to 0.80%, tenth through fifteenth years at 0.35%, sixteenth through twenty-fourth years at 0.25%).

Additional specific ownership tax revenue generated by rate modifications is credited to the Highway Users Tax Fund (HUTF) rather than distributed to counties, creating a new "second stream" funding source.

HUTF revenue from increased specific ownership taxes is allocated to the State Highway Fund, county treasurers, and cities/incorporated towns according to existing statutory formulas under section 43-4-205(6)(b).

Allocated revenue may be expended only for construction, reconstruction, repairs, improvement, planning, supervision, and maintenance of state highways, county roads, and municipal streets, including acquisition of rights-of-way and access rights.

Bill requires voter approval at the November 2020 general election to take effect; otherwise it becomes effective 90 days after final adjournment of the 2019 legislative session (August 2, 2019).