HB 20-1181 Summary

• Repeals the fuel tax exemption for nonprofit transit agencies on liquefied petroleum gas and natural gas used in vehicles for transit purposes, effective August 5, 2020.

• Eliminates Colorado Revised Statutes 39-27-102.5(7), which exempted nonprofit transit agencies receiving public funds from the special fuel tax.

• Justifies repeal based on the exemption being unclaimed since its 1994 enactment, having no performance measures or expiration date, and applying only to fuel types rarely used in transit (no U.S. transit vehicles use liquefied petroleum gas; only 15% use natural gas).

• Intended to simplify state tax administration by removing tax expenditures that lack evaluative components and are not being utilized.

• Subject to referendum petition; takes effect on the date of official declaration of November 2020 general election results if challenged.