Colorado House Bill HB1144 Latest Draft

                            First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
 
 
LLS NO. 25-0708.01 Caroline Martin x5902
HOUSE BILL 25-1144
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
C
ONCERNING THE REPEAL OF RETAIL DELIVERY FEES .101
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
.)
A retail delivery is a retail sale of tangible personal property that
is subject to state sales tax by a retailer for delivery by a motor vehicle to
the purchaser at any location in the state. As authorized by current law,
retail delivery fees are imposed on each retail delivery by the:
! State;
! Community access enterprise;
! Clean fleet enterprise;
! Statewide bridge and tunnel enterprise;
HOUSE SPONSORSHIP
Woog,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. ! Clean transit enterprise; and
! Nonattainment area air pollution mitigation enterprise.
Effective 90 days after the final adjournment of the general
assembly in 2025, the bill eliminates the retail delivery fees.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-38.5-301, amend2
(2)(a), (2)(c) introductory portion, (2)(c)(I), and (2)(c)(V); and repeal3
(1)(a), (1)(b), (1)(c), (1)(d), (2)(d), (2)(e), and (2)(f) as follows:4
24-38.5-301.  Legislative declaration. (1)  The general assembly5
hereby finds and declares that:6
(a)  Retail deliveries are increasing and are expected to continue7
to increase in urban and rural communities;8
(b)  The motor vehicles used to make retail deliveries are some of9
the most polluting vehicles on the road, which has resulted in additional10
and increasing air and greenhouse gas pollution at the local community11
level from idling delivery vehicles in neighborhoods;12
(c)  The adverse environmental and health impacts of increased13
local emissions from motor vehicles used to make retail deliveries can be14
mitigated and offset by investing in the charging and fueling15
infrastructure needed to support widespread public adoption of electric16
motor vehicles and zero emission vehicles and by replacing the state's17
dirtiest passenger vehicles with zero emission vehicles;18
(d)  Instead of reducing the impacts of retail deliveries by limiting19
retail delivery activity through regulation, it is more appropriate to20
continue to allow persons who receive retail deliveries to benefit from the21
convenience afforded by unfettered retail deliveries and instead impose22
a small fee on each retail delivery and use fee revenue to fund necessary23
HB25-1144-2- mitigation activities;1
(2)  The general assembly further finds and declares that:2
(a)  To incentivize, support, and accelerate the construction of3
electric motor vehicle charging and fueling infrastructure in communities4
throughout the state; incentivize, support, and accelerate the adoption of5
electric motor vehicles by businesses, including transportation network6
companies, governmental entities, and individuals; and thereby increase7
access to electric motor vehicles, minimize and mitigate the8
environmental and health impacts caused by transportation-related9
emissions of air pollutants and greenhouse gases, and allow the state and10
its citizens to reap the environmental, health, business and governmental11
operational efficiency, and personal motor vehicle total ownership cost12
savings benefits of widespread adoption of electric motor vehicles, it is13
necessary, appropriate, and in the best interest of the state to create a14
community access enterprise that can provide specialized business15
services, including impact remediation services, that help communities,16
businesses, and governmental entities construct the electric motor vehicle17
charging and fueling infrastructure needed to support widespread18
adoption of electric motor vehicles, including light-duty, medium-duty,19
and heavy-duty motor vehicles and motor vehicles used to make retail20
deliveries, and thereby assuage range anxiety concerns, supply chain21
disruption concerns, and any other concerns that currently disincentivize22
the widespread adoption of electric motor vehicles;23
(c)  The enterprise provides impact remediation services when in24
exchange for the payment of community access retail delivery fees by or25
on behalf of purchasers of tangible personal property for retail delivery,26
it acts to mitigate the impacts of residential and commercial deliveries on27
HB25-1144
-3- the state's transportation infrastructure, air quality, and emissions by:1
(I)  Funding the construction of electric motor vehicle charging2
infrastructure that supports the use of clean and quiet electric motor3
vehicles; including motor vehicles used to make retail deliveries;4
(V)  Providing additional remediation services to offset impacts5
caused by fee payers as may be provided by law;6
(d)  By providing remediation services as authorized by this7
section, the enterprise provides a benefit to fee payers when it remediates8
the impacts they cause and therefore operates as a business in accordance9
with the determination of the Colorado supreme court in Colorado Union10
of Taxpayers Foundation v. City of Aspen, 2018 CO 36;11
(e)  Consistent with the determination of the Colorado supreme12
court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.13
1995), that the power to impose taxes is inconsistent with enterprise status14
under section 20 of article X of the state constitution, it is the conclusion15
of the general assembly that the revenue collected by the enterprise is16
generated by fees, not taxes, because the community access retail delivery17
fee imposed by the enterprise as authorized by section 24-38.5-303 (7) is:18
(I)  Imposed for the specific purpose of allowing the enterprise to19
defray the costs of providing the remediation services specified in this20
section, including mitigating impacts to air quality and greenhouse gas21
emissions caused by the activities on which the fee is assessed, and22
contributes to the implementation of the comprehensive regulatory23
scheme required for the planning, funding, development, construction,24
maintenance, and supervision of a sustainable transportation system; and25
(II)  Collected at rates that are reasonably calculated based on the26
impacts caused by fee payers and the cost of remediating those impacts;27
HB25-1144
-4- and1
(f)  So long as the enterprise qualifies as an enterprise for purposes2
of section 20 of article X of the state constitution, the revenue from the3
community access retail delivery fee collected by the enterprise is not4
state fiscal year spending, as defined in section 24-77-102 (17), or state5
revenues, as defined in section 24-77-103.6 (6)(c), and does not count6
against either the state fiscal year spending limit imposed by section 207
of article X of the state constitution or the excess state revenues cap, as8
defined in section 24-77-103.6 (6)(b)(I)(D).9
SECTION 2. In Colorado Revised Statutes, 24-38.5-302, repeal10
(11), (17), and (18) as follows:11
24-38.5-302.  Definitions. As used in this part 3, unless the12
context otherwise requires:13
(11)  "Inflation" means the average annual percentage change in14
the United States department of labor, bureau of labor statistics, consumer15
price index for Denver-Aurora-Lakewood for all items and all urban16
consumers, or its applicable predecessor or successor index, for the five17
years ending on the last December 31 before the state fiscal year for18
which an inflation adjustment to be made to the community access retail19
delivery fee imposed pursuant to section 24-38.5-303 (7) begins.20
(17)  "Retail delivery" has the same meaning as set forth in section21
43-4-218 (2)(e).22
(18)  "Retailer" has the same meaning as set forth in section23
39-26-102 (8).24
SECTION 3. In Colorado Revised Statutes, 24-38.5-303, amend25
(5)(a) and (6)(f); and repeal (3)(a), (6)(g), and (7) as follows:26
24-38.5-303.  Community access enterprise - creation - board27
HB25-1144
-5- - powers and duties - fund - transparency and reporting. (3)  The1
business purpose of the enterprise is to support the widespread adoption2
of electric motor vehicles, including motor vehicles that originally were3
powered exclusively by internal combustion engines but have been4
converted into electric motor vehicles, in an equitable manner by directly5
investing in transportation infrastructure, making grants or providing6
rebates or other financing options to fund the construction of electric7
motor vehicle charging infrastructure throughout the state, and8
incentivizing the acquisition and use of electric motor vehicles and9
electric alternatives to motor vehicles in communities, including but not10
limited to disproportionately impacted communities, and by owners of11
older, less fuel efficient, and higher polluting vehicles. To allow the12
enterprise to accomplish this business purpose and fully exercise its13
powers and duties through the board, the enterprise may:14
(a)  Impose a community access retail delivery fee as authorized15
by subsection (7) of this section;16
(5) (a)  The community access enterprise fund is hereby created in17
the state treasury. The fund consists of community access retail delivery18
fee revenue credited to the fund pursuant to subsection (7) of this section,19
any monetary gifts, grants, donations, or other payments received by the20
enterprise, any federal money that may be credited to the fund, and any21
other money that the general assembly may appropriate or transfer to the22
fund. The state treasurer shall credit all interest and income derived from23
the deposit and investment of money in the fund to the fund. Money in the24
fund is continuously appropriated to the enterprise and may be expended25
to provide grants and rebates, pay its reasonable and necessary operating26
expenses, including the repayment of any loan received pursuant to27
HB25-1144
-6- subsection (5)(b) of this section, and otherwise exercise its powers and1
perform its duties as authorized by this part 3.2
(6)  In addition to any other powers and duties specified in this3
section, the board has the following general powers and duties:4
(f)  To publish grant and similar program processes by which the5
enterprise accepts applications, the criteria used for evaluating6
applications, and a list of grantees pursuant to subsection (8) of this7
section; 
AND8
(g)  To promulgate rules for the sole purpose of setting the amount
9
of the community access retail delivery fee at or below the maximum10
amount authorized in this section; and11
(7) (a)  In furtherance of its business purpose, beginning in state12
fiscal year 2022-23, the enterprise shall impose, and the department of13
revenue shall collect on behalf of the enterprise, a community access14
retail delivery fee on each retail delivery. Each retailer who makes a retail15
delivery shall either collect and remit or elect to pay the community16
access retail delivery fee in the manner prescribed by the department in17
accordance with section 43-4-218 (6). For the purpose of minimizing18
compliance costs for retailers and administrative costs for the state, the19
department of revenue shall collect and administer the community access20
retail delivery fee on behalf of the enterprise in the same manner in which21
it collects and administers the retail delivery fee imposed by section22
43-4-218 (3).23
(b)  For retail deliveries of tangible personal property purchased24
during state fiscal year 2022-23, the enterprise shall impose the25
community access retail delivery fee in a maximum amount of six and26
nine-tenths cents.27
HB25-1144
-7- (c) (I)  Except as otherwise provided in subsection (7)(c)(II) of this1
section, for retail deliveries of tangible personal property purchased2
during state fiscal year 2023-24 or during any subsequent state fiscal year,3
the enterprise shall impose the community access retail delivery fee in a4
maximum amount that is the maximum amount for the prior state fiscal5
year adjusted for inflation. The enterprise shall notify the department of6
revenue of the amount of the community access retail delivery fee to be7
collected for retail deliveries of tangible personal property purchased8
during each state fiscal year no later than March 15 of the calendar year9
in which the state fiscal year begins, and the department of revenue shall10
publish the amount no later than April15 of the calendar year in which the11
state fiscal year begins.12
(II)  The enterprise is authorized to adjust the amount of the13
community access retail delivery fee for retail deliveries of tangible14
personal property purchased during a state fiscal year only if the15
department of revenue adjusts the amount of the retail delivery fee16
imposed by section 43-4-218 (3) for retail deliveries of tangible personal17
property purchased during the state fiscal year.18
SECTION 4. In Colorado Revised Statutes, 25-7.5-101, amend19
(1)(a), (1)(c), (1)(e) introductory portion, and (2)(e) introductory portion;20
and repeal (1)(d) as follows:21
25-7.5-101.  Legislative declaration. (1)  The general assembly22
hereby finds and declares that:23
(a)  An increasing number of fleet motor vehicles are on the road24
to meet increasing demands for retail deliveries and rides arranged25
through transportation network companies;26
(c)  The adverse environmental and health impacts of increased27
HB25-1144
-8- emissions from fleet motor vehicles used to make retail deliveries and1
provide rides arranged through transportation network companies can be2
mitigated and offset by supporting the widespread adoption of electric3
motor vehicles for use in motor vehicle fleets;4
(d)  Instead of reducing the impacts of retail deliveries and rides5
arranged through transportation network companies by limiting retail6
delivery and transportation network company ride activity through7
regulation, it is more appropriate to continue to allow persons who8
receive retail deliveries and benefit from the convenience afforded by9
unfettered retail deliveries and to allow transportation network companies10
that arrange prearranged rides to continue to provide that service without11
undue restrictions and instead impose a small fee on each retail delivery12
and ride and use fee revenue to fund necessary mitigation activities; and13
(e)  It is necessary, appropriate, and in the best interest of the state14
and all Coloradans to incentivize and support the use of electric motor15
vehicles and, to the extent temporarily necessitated by the limitations of16
current electric motor vehicle technology and availability for certain fleet17
uses, compressed natural gas motor vehicles that are fueled by recovered18
methane and that produce fewer emissions than gasoline or diesel19
powered motor vehicles, by businesses and governmental entities that use20
fleets of motor vehicles, including fleets composed of personal motor21
vehicles owned by individual contractors who provide prearranged rides22
for transportation network companies, or make retail deliveries, and to23
enable the state to achieve its stated electric motor vehicle adoption goals24
because increased usage of electric motor vehicles in motor vehicle fleets:25
(2)  The general assembly further finds and declares that:26
(e)  Consistent with the determination of the Colorado supreme27
HB25-1144
-9- court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.1
1995), that the power to impose taxes is inconsistent with enterprise status2
under section 20 of article X of the state constitution, it is the conclusion3
of the general assembly that the revenue collected by the enterprise is4
generated by fees, not taxes, because the fees imposed by the enterprise5
as authorized by section 25-7.5-103 (7) and (8) are:6
SECTION 5. In Colorado Revised Statutes, 25-7.5-102, amend7
(13); and repeal (21) and (22) as follows:8
25-7.5-102.  Definitions. As used in this article 7.5, unless the9
context otherwise requires:10
(13)  "Inflation" means the average annual percentage change in11
the United States department of labor, bureau of labor statistics, consumer12
price index for Denver-Aurora-Lakewood for all items and all urban13
consumers, or its applicable predecessor or successor index, for the five14
years ending on the last December 31 before a state fiscal year for which15
an inflation adjustment to be made to the clean fleet per ride fee imposed16
by section 25-7.5-103 (7) or the clean fleet retail delivery fee imposed by17
section 25-7.5-103 (8) begins.18
(21)  "Retail delivery" has the same meaning as set forth in section19
43-4-218 (2)(e).20
(22)  "Retailer" has the same meaning as set forth in section21
39-26-102 (8).22
SECTION 6. In Colorado Revised Statutes, 25-7.5-103, amend23
(3)(a), (5)(a), and (6)(h); and repeal (8) as follows:24
25-7.5-103.  Clean fleet enterprise - creation - board - powers25
and duties - fees - fund. (3)  The business purpose of the enterprise is to26
incentivize and support the use of electric motor vehicles, including27
HB25-1144
-10- motor vehicles that originally were powered exclusively by internal1
combustion engines but have been converted into electric motor vehicles,2
and, to the extent temporarily necessitated by the limitations of current3
electric motor vehicle technology for certain fleet uses, compressed4
natural gas motor vehicles that are fueled by recovered methane, by5
businesses and governmental entities that own or operate fleets of motor6
vehicles, including fleets composed of personal motor vehicles owned or7
leased by individual contractors who provide prearranged rides for8
transportation network companies or deliver goods for a third-party9
delivery service. To allow the enterprise to accomplish this purpose and10
fully exercise its powers and duties through the board, the enterprise may:11
(a)  Impose a clean fleet per ride fee and a clean fleet retail12
delivery fee as authorized by subsections (7) and (8) SUBSECTION (7) of13
this section;14
(5) (a)  The clean fleet enterprise fund is hereby created in the state15
treasury. The fund consists of clean fleet per ride fee revenue and clean16
fleet retail delivery fee revenue credited to the fund pursuant to17
subsections (7) and (8) SUBSECTION (7) of this section, any monetary18
gifts, grants, donations, or other payments received by the enterprise, any19
federal money that may be credited to the fund, and any other money that20
the general assembly may appropriate or transfer to the fund. The state21
treasurer shall credit all interest and income derived from the deposit and22
investment of money in the fund to the fund. Money in the fund is23
continuously appropriated to the enterprise for the purposes set forth in24
this article 7.5 and to pay the enterprise's reasonable and necessary25
operating expenses, including the repayment of any loan received26
pursuant to subsection (5)(b) of this section.27
HB25-1144
-11- (6)  In addition to any other powers and duties specified in this1
section, the board has the following general powers and duties:2
(h)  To promulgate rules for the sole purpose of setting the3
amounts AMOUNT of the clean fleet per ride fee and the clean fleet retail4
delivery fee at or below the maximum amounts AMOUNT authorized in5
this section; and6
(8) (a)  In furtherance of its business purpose, beginning in state7
fiscal year 2022-23, the enterprise shall impose, and the department of8
revenue shall collect on behalf of the enterprise, a clean fleet retail9
delivery fee on each retail delivery. Each retailer who makes a retail10
delivery shall either collect and remit or elect to pay the clean fleet retail11
delivery fee in the manner prescribed by the department in accordance12
with section 43-4-218 (6). For the purpose of minimizing compliance13
costs for retailers and administrative costs for the state, the department of14
revenue shall collect and administer the clean fleet retail delivery fee on15
behalf of the enterprise in the same manner in which it collects and16
administers the retail delivery fee imposed by section 43-4-218 (3).17
(b)  For retail deliveries of tangible personal property purchased18
during state fiscal year 2022-23, the enterprise shall impose the clean fleet19
retail delivery fee in a maximum amount of five and three-tenths cents.20
(c) (I)  Except as otherwise provided in subsection (8)(c)(II) of this21
section, for retail deliveries of tangible personal property purchased22
during state fiscal year 2023-24 or during any subsequent state fiscal year,23
the enterprise shall impose the clean fleet retail delivery fee in a24
maximum amount that is the maximum amount for the prior state fiscal25
year adjusted for inflation. The enterprise shall notify the department of26
revenue of the amount of the clean fleet retail delivery fee to be collected27
HB25-1144
-12- for retail deliveries of tangible personal property purchased during each1
state fiscal year no later than March 15 of the calendar year in which the2
state fiscal year begins, and the department of revenue shall publish the3
amount no later than April15 of the calendar year in which the state fiscal4
year begins.5
(II)  The enterprise is authorized to adjust the amount of the clean6
fleet retail delivery fee for retail deliveries of tangible personal property7
purchased during a state fiscal year only if the department of revenue8
adjusts the amount of the retail delivery fee imposed by section 43-4-2189
(3) for retail deliveries of tangible personal property purchased during the10
state fiscal year.11
SECTION 7. In Colorado Revised Statutes, 39-21-119.5, amend12
(2)(s) and (2)(t); and repeal (2)(u) as follows:13
39-21-119.5.  Mandatory electronic filing of returns -14
mandatory electronic payment - penalty - waiver - definitions.15
(2)  Except as provided in subsection (6) of this section, the executive16
director may, as specified in subsection (3) of this section, require the17
electronic filing of returns and require the payment of any tax or fee due18
by electronic funds transfer for the following:19
(s)  Any prepaid wireless 911 charge report required to be filed and20
payment required to be made pursuant to section 29-11-102.5 (3); 
AND21
(t)  Any prepaid wireless telecommunications relay service charge22
report required to be filed and payment required to be made pursuant to23
section 29-11-102.7 (3). and
24
(u)  Any retail delivery fee or enterprise retail delivery fees return25
required to be filed pursuant to section 43-4-218 (6).26
SECTION 8. In Colorado Revised Statutes, 39-26-102, amend27
HB25-1144
-13- (7)(a) introductory portion as follows:1
39-26-102.  Definitions. As used in this article 26, unless the2
context otherwise requires:3
(7) (a)  "Purchase price" means the price to the consumer,4
exclusive of any direct tax imposed by the federal government or by this5
article 26, exclusive of any retail delivery fee and enterprise retail6
delivery fees imposed or collected as specified in section 43-4-218, and,7
in the case of all retail sales involving the exchange of property, also8
exclusive of the fair market value of the property exchanged at the time9
and place of the exchange, if:10
SECTION 9. In Colorado Revised Statutes, 43-4-205, repeal11
(6.8)(b) as follows:12
43-4-205.  Allocation of fund. (6.8) (b) (I)  Revenue from the13
retail delivery fee imposed pursuant to section 43-4-218 (3) that is14
credited to the highway users tax fund as required by section 43-4-21815
(5)(a)(I) must be allocated and expended as follows:16
(A)  Forty percent must be paid to the state highway fund and17
expended as provided in section 43-4-206;18
(B)  Thirty-three percent must be paid to the county treasurers of19
the respective counties, subject to annual appropriation by the general20
assembly, and allocated and expended as provided in section 43-4-207;21
and22
(C)  Twenty-seven percent must be paid to the cities and23
incorporated towns, subject to annual appropriation by the general24
assembly, and must be allocated and expended as provided in section25
43-4-208 (2)(b) and (6)(a).26
(II)  Revenue from the retail delivery fee may be expended for the27
HB25-1144
-14- purposes specified in subsection (6)(b) of this section and may also be1
expended for transit-related projects needed to integrate different2
transportation modes within a multimodal transportation system.3
SECTION 10. In Colorado Revised Statutes, repeal 43-4-218 as4
follows:5
43-4-218.  Additional funding - retail delivery fee - fund6
created - simultaneous collection of enterprise fees - rules - legislative7
declaration - definitions. (1)  The general assembly hereby finds and8
declares that:9
(a)  In recent years, the number of retail deliveries of tangible10
personal property, including restaurant food, has rapidly increased, and11
this rapid growth is expected to continue;12
(b)  The world economic forum estimates that by 2030 there will13
be over thirty percent more delivery vehicles on roads to deliver14
seventy-eight percent more packages, which will increase usage of the15
highways, roads, and streets of the state by motor vehicles used to make16
retail deliveries, traffic congestion, and retail-delivery-related emissions;17
(c)  This additional usage has accelerated and is expected to18
continue to accelerate deterioration of surface transportation system19
infrastructure, and has required and is expected to continue to require the20
state, counties, and municipalities to perform more maintenance and21
reconstruction of state highways, county roads, and city streets;22
(d)  This additional usage has also increased and is expected to23
continue to increase motor-vehicle-related emissions of air pollutants,24
including ozone precursors, particulate matter pollutants, other hazardous25
air pollutants, and greenhouse gases, that contribute to adverse26
environmental effects, including but not limited to climate change, and27
HB25-1144
-15- adverse human health effects;1
(d.3)  There are administrative costs for a retailer when the state2
imposes a fee on retail deliveries, and the benefits from the fee revenue3
need to be balanced with the potential economic impacts on the retailers;4
(d.7)  Fees on retail deliveries should only be imposed on retailers5
that are large enough to absorb these administrative costs without6
significant economic harm;7
(e)  It is therefore necessary and appropriate:8
(I)  To impose a retail delivery fee as specified in this section and9
to credit the proceeds of the fee to the highway users tax fund created in10
section 43-4-201 for allocation to the state, counties, and municipalities11
and to the multimodal transportation and mitigation options fund created12
in section 43-4-1103 (1)(a);13
(II)  To authorize the community access enterprise created in14
section 24-38.5-303 (1) to impose a community access retail delivery fee15
as specified in section 24-38.5-303 (7), authorize the clean fleet enterprise16
created in section 25-7.5-103 (1)(a) to impose a clean fleet retail delivery17
fee as specified in section 25-7.5-103 (8), authorize the statewide bridge18
and tunnel enterprise created in section 43-4-805 (2)(a)(I) to impose a19
bridge and tunnel retail delivery fee as specified in section 43-4-80520
(5)(g.7), authorize the clean transit enterprise created in section21
43-4-1203 (1)(a) to impose a clean transit retail delivery fee as specified22
in section 43-4-1203 (7), and authorize the nonattainment area air23
pollution mitigation enterprise created in section 43-4-1303 (1)(a) to24
impose an air pollution mitigation retail delivery fee as specified in25
section 43-1-1303 (8) to help fund the enterprises' pursuit of their26
respective business purposes;27
HB25-1144
-16- (III)  For the purpose of minimizing compliance costs for fee1
payers and administrative costs for the state, to require the department of2
revenue to collect the retail delivery fees imposed by the enterprises on3
behalf of the enterprises when it collects the retail delivery fee imposed4
by subsection (3) of this section and to distribute the enterprise fee5
revenue to the enterprises; and6
(IV)  To create an exemption from the retail delivery fees for7
retailers with retail sales of five hundred thousand dollars or less.8
(2)  As used in this section, unless the context otherwise requires:9
(a)  "Enterprise retail delivery fees" means:10
(I)  The community access retail delivery fee imposed by the11
community access enterprise created in section 24-38.5-303 (1), as12
specified in section 24-38.5-303 (7);13
(II)  The clean fleet retail delivery fee imposed by the clean fleet14
enterprise created in section 25-7.5-103 (1)(a), as specified in section15
25-7.5-103 (8);16
(III)  The bridge and tunnel retail delivery fee imposed by the17
statewide bridge and tunnel enterprise created in section 43-4-80518
(2)(a)(I), as specified in section 43-4-805 (5)(g.7);19
(IV)  The clean transit retail delivery fee imposed by the clean20
transit enterprise created in section 43-4-1203 (1)(a) as specified in21
section 43-4-1203 (7); and22
(V)  The air pollution mitigation retail delivery fee imposed by the23
nonattainment area air pollution mitigation enterprise created in section24
43-4-1303 (1)(a) as specified in section 43-1-1303 (8).25
(b)  "Inflation" means the average annual percentage change in the26
United States department of labor, bureau of labor statistics, consumer27
HB25-1144
-17- price index for Denver-Aurora-Lakewood for all items and all urban1
consumers, or its applicable predecessor or successor index, for the five2
years ending on the last December 31 before the calendar year in which3
a state fiscal year for which an inflation adjustment to the retail delivery4
fee imposed by subsection (3) of this section is to be made begins.5
(c)  "Motor vehicle" has the same meaning as set forth in section6
42-1-102 (58). The term does not include a personal delivery device.7
(d)  "Personal delivery device" means an autonomously operated8
robot that is:9
(I)  Designed and manufactured for the purpose of transporting10
tangible personal property primarily on sidewalks, crosswalks, and other11
public rights-of-way that are typically used by pedestrians;12
(II)  Weighs no more than five hundred fifty pounds, excluding13
any tangible personal property being transported; and14
(III)  Operates at speeds of less than ten miles per hour when on15
sidewalks, crosswalks, and other public rights-of-way that are typically16
used by pedestrians.17
(e)  "Retail delivery" means a retail sale of tangible personal18
property by a retailer for delivery by a motor vehicle owned or operated19
by the retailer or any other person to the purchaser at a location in this20
state, which sale includes at least one item of tangible personal property21
that is subject to taxation under article 26 of title 39. Each such retail sale22
is a single retail delivery regardless of the number of shipments necessary23
to deliver the items of tangible personal property purchased.24
(f)  "Retailer" has the same meaning as set forth in section25
39-26-102 (8).26
(g)  "Retail sale" has the same meaning as set forth in section27
HB25-1144
-18- 39-26-102 (9).1
(h)  "Tangible personal property" has the same meaning as set2
forth in section 39-26-102 (15).3
(3) (a)  A retail delivery fee in an amount set forth in this4
subsection (3)(a) and subsection (3)(b) of this section is imposed on each5
retail delivery. Except as otherwise provided in subsection (6)(b)(II) of6
this section, for retail deliveries of tangible personal property purchased7
during state fiscal year 2022-23, each retailer who makes a retail delivery8
shall add to the price of the retail delivery, collect from the purchaser, and9
pay to the department of revenue at the time and in the manner prescribed10
by the department in accordance with subsection (6) of this section a11
retail delivery fee in the amount of eight and four-tenths cents.12
(b) (I)  Except as otherwise provided in subsection (6)(b)(II) of this13
section, for retail deliveries of tangible personal property purchased14
during state fiscal year 2023-24 or during any subsequent state fiscal year,15
each retailer who makes a retail delivery shall add to the price of the retail16
delivery, collect from the purchaser, and pay to the department of revenue17
at the time and in the manner prescribed by the department in accordance18
with subsection (6) of this section a retail delivery fee equal to the amount19
of the retail delivery fee for retail deliveries of tangible personal property20
purchased during the prior state fiscal year adjusted for inflation. The21
department of revenue shall annually calculate the inflation adjusted22
amount of the retail delivery fee to be imposed on retail deliveries of23
tangible personal property purchased during each state fiscal year and24
shall publish the amount no later than April 15 of the calendar year in25
which the state fiscal year begins.26
(II)  The department of revenue shall adjust the amount of the27
HB25-1144
-19- retail delivery fee for retail deliveries of tangible personal property1
purchased during a state fiscal year only if inflation is positive and2
cumulative inflation from the time of the last adjustment in the amount of3
the retail delivery fee, when applied to the sum of the current retail4
delivery fee and all current enterprise retail delivery fees and rounded to5
the nearest whole cent, will result in an increase of at least one whole cent6
in the total amount of the retail delivery fee and all enterprise retail7
delivery fees imposed on each retail delivery. The amount of cumulative8
inflation to be applied to the sum of the current retail delivery fee and all9
current enterprise retail delivery fees and rounded to the nearest whole10
cent is the lesser of actual cumulative inflation or five percent.11
(c)  A retail delivery that includes only tangible personal property,12
the sale of which is exempt from state sales tax under article 26 of title13
39, is exempt from the retail delivery fee and from the enterprise retail14
delivery fees. A retail delivery made to a purchaser who is exempt from15
paying state sales tax under article 26 of title 39 is exempt from the retail16
delivery fee and from the enterprise retail delivery fees.17
(d) (I)  Notwithstanding any other provision of law, a retail18
delivery by a qualified business made on or after July 1, 2022, is exempt19
from the retail delivery fee imposed by this subsection (3) and the20
enterprise retail delivery fees.21
(II)  There are no refunds under section 39-26-703 of any retail22
delivery fees for a retail delivery made on or after July 1, 2022, but before23
July 1, 2023, on the basis of the exemption set forth in subsection24
(3)(d)(I) of this section.25
(III)  As used in this subsection (3)(d), "qualified business" means26
a retailer that in the previous calendar year made retail sales of tangible27
HB25-1144
-20- personal property, commodities, or services in the state totaling five1
hundred thousand dollars or less. If the retailer had no retail sales in the2
state in the previous calendar year, then the retailer is deemed to be a3
"qualified business" for the current calendar year, until the first day of the4
month after the ninetieth day after the retailer has made retail sales of5
tangible personal property, commodities, or services in the state that total6
more than five hundred thousand dollars.7
(4) (a)  For the purpose of minimizing compliance costs for8
retailers and administrative costs for the state, the department of revenue9
shall, when it collects the retail delivery fee imposed by subsection (3) of10
this section, also collect on behalf of the community access enterprise11
created in section 24-38.5-303 (1), the clean fleet enterprise created in12
section 25-7.5-103 (1)(a), the statewide bridge and tunnel enterprise13
created in section 43-4-805 (2)(a)(I), the clean transit enterprise created14
in section 43-1-1203 (1)(a), and the nonattainment area air pollution15
mitigation enterprise created in section 43-4-1303 (1)(a), the enterprise16
retail delivery fees.17
(b)  When collecting the retail delivery fee and, in accordance with18
subsection (4)(a) of this section, the enterprise retail delivery fees, the19
department of revenue shall retain an amount that does not exceed the20
total cost of collecting, administering, and enforcing the retail delivery fee21
and the enterprise retail delivery fees and shall transmit the amount22
retained to the state treasurer, who shall credit it to the retail delivery fees23
fund, which is hereby created in the state treasury. All money in the retail24
delivery fees fund is continuously appropriated to the department of25
revenue to defray the costs incurred by the department in collecting,26
enforcing, and administering the retail delivery fee and the enterprise27
HB25-1144
-21- retail delivery fees.1
(5) (a)  The department of revenue shall transmit all net revenue2
collected from the retail delivery fee imposed by subsection (3) of this3
section to the state treasurer, who shall credit the net revenue as follows:4
(I)  Seventy-one and one-tenth percent shall be credited to the5
highway users tax fund created in section 43-4-201 and allocated from the6
highway users tax fund to the state, counties, and municipalities as7
required by section 43-4-205 (6.8); and8
(II)  Twenty-eight and nine-tenths percent shall be credited to the9
multimodal transportation and mitigation options fund created in section10
43-4-1103 (1)(a);11
(b)  The department of revenue shall transmit all net revenue12
collected from enterprise retail delivery fees to the state treasurer who13
shall credit the net revenue as follows:14
(I)  All net community access retail delivery fee revenue shall be15
credited to the community access enterprise fund created in section16
24-38.5-303 (5);17
(II)  All net clean fleet retail delivery fee revenue shall be credited18
to the clean fleet enterprise fund created in section 25-7.5-103 (5);19
(III)  All net bridge and tunnel retail delivery fee revenue shall be20
credited to the statewide bridge and tunnel enterprise special revenue21
fund created in section 43-4-805 (3)(a);22
(IV)  All net clean transit retail delivery fee revenue shall be23
credited to the clean transit enterprise fund created in section 43-4-120324
(5); and25
(V)  All net air pollution mitigation retail delivery fee revenue26
shall be credited to the nonattainment area air pollution mitigation27
HB25-1144
-22- enterprise fund created in section 43-4-1303 (5).1
(6) (a)  Except as otherwise provided in this subsection (6), the2
collection, administration, and enforcement of the retail delivery fee3
imposed by subsection (3) of this section and the enterprise retail delivery4
fees shall be performed by the executive director of the department of5
revenue in the same manner as the collection, administration, and6
enforcement of state sales tax pursuant to article 26 of title 39.7
(b) (I)  Except as otherwise provided in subsection (6)(b)(II) of this8
section, every retailer who makes a retail delivery shall add the retail9
delivery fee imposed by subsection (3) of this section and the enterprise10
retail delivery fees to the price or charge for the retail delivery showing11
the total of the fees as one item called "retail delivery fees" that is12
separate and distinct from the price and any other taxes or fees imposed13
on the retail delivery. If added, the fees constitute a part of the retail14
delivery price or charge, are a debt from the purchaser to the retailer until15
paid, and are recoverable at law in the same manner as other debts.16
(II)  A retailer may elect to pay the retail delivery fee imposed by17
subsection (3) of this section and the enterprise retail delivery fees for a18
retail delivery on behalf of a purchaser. If a retailer elects to pay these19
fees, then:20
(A)  The retailer shall not add the fees to the price or charge for the21
retail delivery showing the total of the fees as one item called "retail22
delivery fees" that is separate and distinct from the price and any other23
taxes or fees imposed on the retail delivery;24
(B)  The purchaser is neither liable nor responsible for the payment25
of the fees; and26
(C)  The purchaser is not entitled to a refund for fees that are paid27
HB25-1144
-23- for a retail delivery that is exempt under subsection (3)(c) or (3)(d) of this1
section. A retailer may claim a refund under section 39-26-703 for the2
exempt fees paid; except that section 39-26-703 (2.5)(b)(I)(B) shall not3
apply in this circumstance.4
(c)  Every retailer who makes a retail delivery is liable and5
responsible for the payment of an amount equivalent to the total amount6
of the retail delivery fee imposed by subsection (3) of this section and the7
enterprise retail delivery fees for each retail delivery made irrespective of8
the requirements of subsection (6)(b) of this section. The burden of9
proving that a retailer is exempt from collecting or electing to pay the fees10
on any retail delivery and paying the fees to the executive director of the11
department of revenue is on the retailer under such reasonable12
requirements of proof as the executive director may prescribe. The retailer13
is entitled, as collecting agent for the state, to apply and credit the amount14
of the retailer's collections, if any, against the amount to be paid pursuant15
to this subsection (6)(c).16
(d) (I)  A retailer who collects the retail delivery fee imposed by17
subsection (3) of this section and the enterprise retail delivery fees shall18
remit the fees to the department of revenue at the same time and in the19
same manner as the retailer remits sales tax revenue collected to the20
department as required by article 26 of title 39 unless the department21
requires or authorizes the fees to be remitted at another time or in another22
manner.23
(II)  A retailer who elects to pay the retail delivery fee imposed by24
subsection (3) of this section and the enterprise retail delivery fees on25
behalf of a purchaser in accordance with subsection (6)(b)(II) of this26
section shall remit the fees to the department of revenue as if the fees had27
HB25-1144
-24- been collected from the purchaser on the date of the retail delivery, as1
specified in subsection (6)(d)(I) of this section.2
(e)  All money paid to a retailer as a retail delivery fee imposed by3
subsection (3) of this section, or as one or more of the enterprise retail4
delivery fees, shall be and remains public money, the property of the state5
of Colorado, in the hands of the retailer, and the retailer shall hold the6
money in trust for the sole use and benefit of the state of Colorado until7
paid to the executive director of the department of revenue, and, for8
failure to pay the money to the executive director, a retailer shall be9
punished as provided by law. If any retailer collects fees in excess of the10
amount imposed by this section and sections 24-38.5-303 (7), 25-7.5-10311
(8), 43-4-1203 (7), and 43-4-1303 (8), the retailer shall remit to the12
executive director of the department of revenue the full amount of the13
fees and also the full amount of the excess.14
(f)  The department of revenue shall waive any processing costs,15
as defined in section 39-21-119.5 (7)(d)(II), for electronic payment of the16
retail delivery fee imposed by subsection (3) of this section and the17
enterprise retail delivery fees if:18
(I)  The processing costs would exceed the amount of the retail19
delivery fees the retailer is remitting; and20
(II)  The electronic payment is by automated clearing house (ACH)21
debit.22
(7)  The department of revenue may promulgate rules to implement23
this section.24
SECTION 11. In Colorado Revised Statutes, 43-4-805, amend25
(1)(b)(II), (2)(b)(I), (2)(c), (3)(a), (5)(r)(I), and (5)(r)(III)(A); and repeal26
(5)(g.7) as follows:27
HB25-1144
-25- 43-4-805.  Statewide bridge enterprise - creation - board -1
funds - powers and duties - legislative declaration - definitions.2
(1)  The general assembly hereby finds and declares that:3
(b)  Due to the limited availability of state and federal funding and4
the need to accomplish the financing, repair, reconstruction, and5
replacement of designated bridges; the completion of preventative6
maintenance bridge projects; and the completion of tunnel projects as7
promptly and efficiently as possible, it is necessary to create a statewide8
bridge and tunnel enterprise and to authorize the enterprise to:9
(II)  Impose a bridge safety surcharge 
AND a bridge and tunnel10
impact fee and a bridge and tunnel retail delivery fee
 at rates reasonably11
calculated to defray the costs of completing designated bridge projects,12
preventative maintenance bridge projects, and tunnel projects and13
distribute the burden of defraying the costs in a manner based on the14
benefits received by persons paying the fees and using designated bridges15
and tunnels, and receiving retail deliveries, receive and expend revenue16
generated by the surcharge and fees and other money, issue revenue17
bonds and other obligations, contract with the state, if required approvals18
are obtained, to receive one or more loans of money received by the state19
under the terms of one or more financed purchase of an asset or certificate20
of participation agreements authorized by this part 8, expend revenue21
generated by the surcharge to repay any such loan or loans received, and22
exercise other powers necessary and appropriate to carry out its purposes;23
and24
(2) (b)  The business purpose of the bridge enterprise is to finance,25
repair, reconstruct, and replace any designated bridge in the state,26
complete preventative maintenance bridge projects, and complete tunnel27
HB25-1144
-26- projects and, as agreed upon by the enterprise and the commission, or the1
department to the extent authorized by the commission, to maintain the2
bridges it finances, repairs, reconstructs, and replaces. To allow the3
bridge enterprise to accomplish this purpose and fully exercise its powers4
and duties through the bridge enterprise board, the bridge enterprise may:5
(I)  Impose a bridge safety surcharge 
AND a bridge and tunnel6
impact fee and a bridge and tunnel retail delivery fee
 as authorized by7
subsections (5)(g) 
AND (5)(g.5) and (5)(g.7)
 of this section;8
(c)  The bridge enterprise constitutes an enterprise for purposes of9
section 20 of article X of the state constitution so long as it retains the10
authority to issue revenue bonds and receives less than ten percent of its11
total revenues in grants from all Colorado state and local governments12
combined. So long as it constitutes an enterprise pursuant to this13
subsection (2)(c), the bridge enterprise shall not be subject to any14
provisions of section 20 of article X of the state constitution. Consistent15
with the determination of the Colorado supreme court in Nicholl v. E-47016
Public Highway Authority, 896 P.2d 859 (Colo. 1995), that the power to17
impose taxes is inconsistent with "enterprise" status under section 20 of18
article X of the state constitution, the general assembly finds and declares19
that a bridge safety surcharge 
OR a bridge and tunnel impact fee or a
20
bridge and tunnel retail delivery fee imposed by the bridge enterprise as21
authorized by subsection (5)(g) 
OR (5)(g.5) or (5)(g.7)
 of this section is22
not a tax but is instead a fee imposed by the bridge enterprise to defray23
the cost of completing designated bridge projects, preventative24
maintenance bridge projects, and tunnel projects that the enterprise25
provides as a specific service to the persons upon whom the fee is26
imposed and at rates reasonably calculated based on the benefits received27
HB25-1144
-27- by such persons.1
(3) (a)  The statewide bridge and tunnel enterprise special revenue2
fund, referred to in this part 8 as the "bridge special fund", is hereby3
created in the state treasury. All revenue received by the bridge enterprise,4
including, but not limited to, revenue from a bridge safety surcharge5
imposed as authorized by subsection (5)(g) of this section, revenue from6
a bridge and tunnel impact fee imposed as authorized by subsection7
(5)(g.5) of this section, revenue from a bridge and tunnel retail delivery8
fee imposed as authorized by subsection (5)(g.7) of this section, and any9
money loaned to the enterprise by the state pursuant to subsection (5)(r)10
of this section, shall be deposited into the bridge special fund. The bridge11
enterprise board may establish separate accounts within the bridge special12
fund as needed in connection with any specific designated bridge project,13
preventative maintenance bridge project, or tunnel project. The bridge14
enterprise also may deposit or permit others to deposit other money into15
the bridge special fund, but in no event may revenue from any tax16
otherwise available for general purposes be deposited into the bridge17
special fund. The state treasurer, after consulting with the bridge18
enterprise board, shall invest any money in the bridge special fund,19
including any surplus or reserves, but excluding any proceeds from the20
sale of bonds or earnings on such proceeds invested pursuant to section21
43-4-807 (2), that are not needed for immediate use. Such money may be22
invested in the types of investments authorized in sections 24-36-109,23
24-36-112, and 24-36-113.24
(5)  In addition to any other powers and duties specified in this25
section, the bridge enterprise board has the following powers and duties:26
(g.7) (I)  In furtherance of its business purpose, beginning in state27
HB25-1144
-28- fiscal year 2022-23, the bridge enterprise shall impose, and the1
department of revenue shall collect on behalf of the bridge enterprise, a2
bridge and tunnel retail delivery fee on each retail delivery. Each retailer3
who makes a retail delivery shall either collect and remit or elect to pay4
the bridge and tunnel retail delivery fee in the manner prescribed by the5
department in accordance with section 43-4-218 (6). For the purpose of6
minimizing compliance costs for retailers and administrative costs for the7
state, the department of revenue shall collect and administer the bridge8
and tunnel retail delivery fee on behalf of the bridge enterprise in the9
same manner in which it collects and administers the retail delivery fee10
imposed by section 43-4-218 (3).11
(II)  For retail deliveries of tangible personal property purchased12
during state fiscal year 2022-23, the bridge enterprise shall impose the13
bridge and tunnel retail delivery fee in a maximum amount of two and14
seven-tenths cents.15
(III) (A)  Except as otherwise provided in subsection16
(5)(g.7)(III)(B) of this section, for retail deliveries of tangible personal17
property purchased during state fiscal year 2023-24 or during any18
subsequent state fiscal year, the bridge enterprise shall impose the bridge19
and tunnel retail delivery fee in a maximum amount that is the maximum20
amount for the prior state fiscal year adjusted for inflation. The bridge21
enterprise shall notify the department of revenue of the amount of the22
bridge and tunnel retail delivery fee to be collected for retail deliveries of23
tangible personal property purchased during each state fiscal year no later24
than March 15 of the calendar year in which the state fiscal year begins,25
and the department of revenue shall publish the amount no later than26
April15 of the calendar year in which the state fiscal year begins.27
HB25-1144
-29- (B)  The bridge enterprise is authorized to adjust the amount of the1
bridge and tunnel retail delivery fee for retail deliveries of tangible2
personal property purchased during a state fiscal year only if the3
department of revenue adjusts the amount of the retail delivery fee4
imposed by section 43-4-218 (3) for retail deliveries of tangible personal5
property purchased during the state fiscal year.6
(IV)  As used in this subsection (5)(g.7):7
(A)  "Inflation" means the average annual percentage change in the8
United States department of labor, bureau of labor statistics, consumer9
price index for Denver-Aurora-Lakewood for all items and all urban10
consumers, or its applicable predecessor or successor index, for the five11
years ending on the last December 31 before a state fiscal year for which12
an inflation adjustment to be made to the bridge and tunnel retail delivery13
fee imposed pursuant to this subsection (5)(g.7) begins.14
(B)  "Retail delivery" has the same meaning as set forth in section15
43-4-218 (2)(e).16
(C)  "Retailer" has the same meaning as set forth in section17
39-26-102 (8).18
(r) (I)  To contract with the state to borrow money under the terms19
of one or more loan contracts entered into by the state and the bridge20
enterprise pursuant to subsection (5)(r)(III) of this section, to expend any21
money borrowed from the state for the purpose of completing designated22
bridge projects, preventative maintenance bridge projects, and tunnel23
projects and for any other authorized purpose that constitutes the24
construction, supervision, and maintenance of the public highways of this25
state for purposes of section 18 of article X of the state constitution, and26
to use revenue generated by any bridge safety surcharge 
OR bridge and27
HB25-1144
-30- tunnel impact fee or bridge and tunnel retail delivery fee imposed1
pursuant to subsection (5)(g) 
OR (5)(g.5) or (5)(g.7)
 of this section and2
any other legally available money of the bridge enterprise to repay the3
money borrowed and any other amounts payable under the terms of the4
loan contract.5
(III) (A)  If the state treasurer receives a list from the governor6
pursuant to subsection (5)(r)(II) of this section, the state, acting by and7
through the state treasurer, may enter into a loan contract with the bridge8
enterprise and may raise the money needed to make a loan pursuant to the9
terms of the loan contract by selling or leasing one or more of the state10
buildings or other state capital facilities on the list. The state treasurer11
shall have sole discretion to enter into a loan contract on behalf of the12
state and to determine the amount of a loan; except that the principal13
amount of a loan shall not exceed the maximum amount specified by the14
governor pursuant to subsection (5)(r)(II) of this section. The state15
treasurer shall also have sole discretion to determine the timing of the16
entry of the state into any loan contract or the sale or lease of one or more17
state buildings or other state capital facilities. The loan contract shall18
require the bridge enterprise to pledge to the state all or a portion of the19
revenues of any bridge safety surcharge 
OR bridge and tunnel impact fee20
or bridge and tunnel retail delivery fee
 imposed pursuant to subsection21
(5)(g) 
OR (5)(g.5) or (5)(g.7)
 of this section for the repayment of the loan22
and may also require the bridge enterprise to pledge to the state any other23
legally available revenue of the bridge enterprise. Any loan contract24
entered into by the state, acting by and through the state treasurer, and the25
bridge enterprise pursuant to this subsection (5)(r)(III)(A) and any pledge26
of revenue by the bridge enterprise pursuant to such a loan contract shall27
HB25-1144
-31- be only for the benefit of, and enforceable only by, the state and the1
bridge enterprise. Specifically, but without limiting the generality of said2
limitation, no such loan contract or pledge shall be for the benefit of, or3
enforceable by, a seller under a financed purchase of an asset or4
certificate of participation agreement entered into pursuant to this5
subsection (5)(r)(III), an owner of any instrument evidencing rights to6
receive rentals or other payments made and to be made under such a7
financed purchase of an asset or certificate of participation agreement as8
authorized by subsection (5)(r)(IV)(B) of this section, a party to any9
ancillary agreement or instrument entered into pursuant to subsection10
(5)(r)(V) of this section, or a party to any interest rate exchange11
agreement entered into pursuant to subsection (5)(r)(VII)(A) of this12
section.13
SECTION 12. In Colorado Revised Statutes, 43-4-1201, amend14
(1)(e)(II), (2)(c) introductory portion, (2)(e) introductory portion, and15
(2)(g); and repeal (1)(a), (1)(b), (1)(c), (1)(d), (1)(f), and (2)(f) as16
follows:17
43-4-1201.  Legislative declaration. (1)  The general assembly18
hereby finds and declares that:19
(a)  Retail deliveries are increasing and are expected to continue20
to increase in communities across the state;21
(b)  The motor vehicles used to make retail deliveries are some of22
the most polluting vehicles on the road, which has resulted in additional23
and increasing air and greenhouse gas pollution;24
(c)  The adverse environmental and health impacts of increased25
emissions from motor vehicles used to make retail deliveries can be26
mitigated and offset by supporting the widespread adoption of electric27
HB25-1144
-32- buses for transit fleets and reducing vehicle miles traveled by encouraging1
people to choose clean, efficient, public transit options instead of personal2
motor vehicle travel;3
(d)  Instead of reducing the impacts of retail deliveries by limiting4
retail delivery activity through regulation, it is more appropriate to5
continue to allow persons who receive retail deliveries to benefit from the6
convenience afforded by unfettered retail deliveries and instead impose7
a small fee on each retail delivery and use fee revenue to fund necessary8
mitigation activities;9
(e)  It is necessary, appropriate, and in the best interest of the state10
and all Coloradans to incentivize, support, and accelerate the11
electrification of public transit in rural and urban areas throughout the12
state because electrification:13
(II)  By reducing fuel and maintenance costs associated with the14
use of motor vehicles, helps public transit providers operate more15
efficiently, use cost savings to provide more reliable and convenient16
transit service to more riders, and further reduce emissions by reducing17
personal motor vehicle use. and18
(f)  By reducing motor vehicle emissions, transit fleet19
electrification effectively remediates some of the impacts of retail20
deliveries by offsetting a portion of the increased motor vehicle emissions21
resulting from such deliveries.22
(2)  The general assembly further finds and declares that:23
(c)  The enterprise provides impact remediation services when in24
exchange for the payment of clean transit retail delivery fees by or on25
behalf of purchasers of tangible personal property for retail delivery, it26
acts to mitigate the impacts of residential and commercial deliveries on27
HB25-1144
-33- the state's transportation infrastructure, air quality, and emissions by:1
(e)  Consistent with the determination of the Colorado supreme2
court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.3
1995), that the power to impose taxes is inconsistent with enterprise status4
under section 20 of article X of the state constitution, it is the conclusion5
of the general assembly that the revenue collected by the enterprise is6
generated by fees, not taxes, because the clean transit retail delivery fee7
imposed by the enterprise as authorized by section 43-4-1203 (7) and the8
production fee for clean transit are IS:9
(f)  So long as the enterprise qualifies as an enterprise for purposes10
of section 20 of article X of the state constitution, the revenue from the11
clean transit retail delivery fee collected by the enterprise is not state12
fiscal year spending, as defined in section 24-77-102 (17), or state13
revenues, as defined in section 24-77-103.6 (6)(c), and does not count14
against either the state fiscal year spending limit imposed by section 2015
of article X of the state constitution or the excess state revenues cap, as16
defined in section 24-77-103.6 (6)(b)(I)(D); and17
(g)  The addition of the production fee for clean transit continues18
to serve the enterprise's primary business purposes set forth in section19
43-4-1203 (3)(a). If the addition COLLECTION of the production fee for20
clean transit combined with the clean transit retail delivery fee 
THAT WAS21
COLLECTED BY THE ENTERPRISE PRIOR TO THE REPEAL OF THAT FEE BY22
THIS HOUSE BILL 25-____, ENACTED IN 2025, is estimated to result in the23
collection of fees and surcharges that exceed one hundred million dollars24
in the enterprise's first five fiscal years, the board shall adjust the fees
25
PRODUCTION FEE, lower the fees FEE, or stop collecting the fees FEE in26
order to not collect fees or surcharges that exceed one hundred million27
HB25-1144
-34- dollars in the enterprise's first five fiscal years, which five-year period, for1
the purpose of section 24-77-108, ends on June 30, 2026. Therefore, the2
enterprise, originally created in section 43-4-1203, is in compliance with3
section 24-77-108.4
SECTION 13. In Colorado Revised Statutes, 43-4-1202, repeal5
(11), (15), and (16), as follows:6
43-4-1202.  Definitions. As used in this part 12, unless the context7
otherwise requires:8
(11)  "Inflation" means the average annual percentage change in9
the United States department of labor, bureau of labor statistics, consumer10
price index for Denver-Aurora-Lakewood for all items and all urban11
consumers, or its applicable predecessor or successor index, for the five12
years ending on the last December 31 before a state fiscal year for which13
an inflation adjustment to be made to the clean transit retail delivery fee14
imposed pursuant to section 43-4-1203 (7) begins.15
(15)  "Retail delivery" has the same meaning as set forth in section16
43-4-218 (2)(e).17
(16)  "Retailer" has the same meaning as set forth in section18
39-26-102 (8).19
SECTION 14. In Colorado Revised Statutes, 43-4-1203, amend20
(3)(a)(I), (5)(a), and (6)(g); and repeal (3)(b)(I) and (7) as follows:21
43-4-1203.  Clean transit enterprise - creation - board - powers22
and duties - rules - fees - fund. (3) (a)  The primary business purposes23
of the enterprise are to:24
(I)  Reduce and mitigate the adverse environmental and health25
impacts of air pollution and greenhouse gas emissions produced by motor26
vehicles used to make retail deliveries by supporting the replacement of27
HB25-1144
-35- existing gasoline and diesel transit vehicles with electric motor vehicles,1
including motor vehicles that originally were powered exclusively by2
internal combustion engines but have been converted into electric motor3
vehicles; providing the associated charging infrastructure for electric4
transit fleet motor vehicles; supporting facility modifications that allow5
for the safe operation and maintenance of electric transit motor vehicles;6
and funding planning studies that enable transit agencies to plan for7
transit vehicle electrification; and8
(b)  To allow the enterprise to accomplish the business purposes9
described in subsection (3)(a) of this section and fully exercise its powers10
and duties through the board, the enterprise may:11
(I)  Impose a clean transit retail delivery fee as authorized by12
subsection (7) of this section;13
(5) (a)  The clean transit enterprise fund is hereby created in the14
state treasury. The fund consists of clean transit retail delivery fee15
revenue credited to the fund pursuant to subsection (7) of this section, any16
monetary gifts, grants, donations, or other money received by the17
enterprise, any federal money that may be credited to the fund, and any18
other money that the general assembly may appropriate or transfer to the19
fund. The state treasurer shall credit all interest and income derived from20
the deposit and investment of money in the fund to the fund. Subject to21
annual appropriation by the general assembly, the enterprise may expend22
money from the fund to provide grants, pay its reasonable and necessary23
operating expenses, including repayment of any loan received by the24
enterprise pursuant to subsection (5)(b) of this section, and otherwise25
exercise its powers and perform its duties as authorized by this part 3.26
(6)  In addition to any other powers and duties specified in this27
HB25-1144
-36- section, the board has the following general powers and duties:1
(g)  To promulgate ADOPT rules to set the amount of the clean2
transit retail delivery fee at or below the maximum amount authorized in3
this section and to govern the process by which the enterprise accepts4
applications for, awards, and oversees grants, loans, and rebates pursuant5
to subsection (8) of this section; and6
(7) (a)  In furtherance of its business purpose, beginning in state7
fiscal year 2022-23, the enterprise shall impose, and the department of8
revenue shall collect on behalf of the enterprise, a clean transit retail9
delivery fee on each retail delivery. Each retailer who makes a retail10
delivery shall either collect and remit or elect to pay the clean transit retail11
delivery fee in the manner prescribed by the department in accordance12
with section 43-4-218 (6). For the purpose of minimizing compliance13
costs for retailers and administrative costs for the state, the department of14
revenue shall collect and administer the clean transit retail delivery fee on15
behalf of the enterprise in the same manner in which it collects and16
administers the retail delivery fee imposed by section 43-4-218 (3).17
(b)  For retail deliveries of tangible personal property purchased18
during state fiscal year 2022-23, the enterprise shall impose the clean19
transit retail delivery fee in a maximum amount of three cents.20
(c) (I)  Except as otherwise provided in subsection (7)(c)(II) of this21
section, for retail deliveries of tangible personal property purchased22
during state fiscal year 2023-24 or during any subsequent state fiscal year,23
the enterprise shall impose the clean transit retail delivery fee in a24
maximum amount that is the maximum amount for the prior state fiscal25
year adjusted for inflation. The enterprise shall notify the department of26
revenue of the amount of the clean transit retail delivery fee to be27
HB25-1144
-37- collected for retail deliveries of tangible personal property purchased1
during each state fiscal year no later than March 15 of the calendar year2
in which the state fiscal year begins, and the department of revenue shall3
publish the amount no later than April 15 of the calendar year in which4
the state fiscal year begins.5
(II)  The enterprise is authorized to adjust the amount of the clean6
transit retail delivery fee for retail deliveries of tangible personal property7
purchased during a state fiscal year only if the department of revenue8
adjusts the amount of the retail delivery fee imposed by section 43-4-2189
(3) for retail deliveries of tangible personal property purchased during the10
state fiscal year.11
SECTION 15. In Colorado Revised Statutes, 43-4-1301, amend12
(1)(a), (1)(c), (2)(a), (2)(c), and (2)(d) as follows:13
43-4-1301.  Legislative declaration. (1)  The general assembly14
hereby finds and declares that:15
(a)  Rapid and continuing growth in retail deliveries made by16
motor vehicles and in prearranged rides arranged through transportation17
network companies has increased and will continue to increase traffic18
congestion and air pollution from motor vehicle emissions, along with the19
adverse environmental and health impacts that result from such pollution,20
in nonattainment areas, including but not limited to disproportionately21
impacted communities and communities adjacent to highways;22
(c)  Instead of reducing the impacts of retail deliveries and23
prearranged rides arranged through transportation network companies, by24
limiting retail delivery and prearranged ride activity through regulation,25
it is more appropriate to continue to allow persons who receive retail26
deliveries and benefit from the convenience afforded by unfettered retail27
HB25-1144
-38- deliveries and to allow transportation network companies that arrange1
prearranged rides to continue to provide that service without undue2
restrictions and to instead impose a small fee on each retail delivery and3
prearranged ride and use fee revenue to fund necessary mitigation4
activities.5
(2)  The general assembly further finds and declares that:6
(a)  The enterprise provides impact remediation services when, in7
exchange for the payment of air pollution mitigation per ride fees by8
transportation network companies, and air pollution mitigation retail9
delivery fees by or on behalf of purchasers of tangible personal property10
for retail delivery it acts as authorized by this section to mitigate the11
impacts of prearranged rides arranged through transportation network12
companies and residential and commercial deliveries on the state's13
transportation infrastructure, air quality, and emissions;14
(c)  Consistent with the determination of the Colorado supreme15
court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.16
1995), that the power to impose taxes is inconsistent with enterprise status17
under section 20 of article X of the state constitution, it is the conclusion18
of the general assembly that the revenue collected by the enterprise is19
generated by fees, not taxes, because the air pollution mitigation per ride20
fee and the air pollution mitigation retail delivery fee imposed by the21
enterprise as authorized by section 43-4-1303 are IS:22
(I)  Imposed for the specific purpose of allowing the enterprise to23
defray the costs of providing the remediation services specified in this24
section, including mitigating impacts to air quality and greenhouse gas25
emissions caused by the activities on which the fees are FEE IS assessed,26
and contribute to the implementation of the comprehensive regulatory27
HB25-1144
-39- scheme required for the planning, funding, development, construction,1
maintenance, and supervision of a sustainable transportation system; and2
(II)  Collected at rates that are reasonably calculated based on the3
impacts caused by fee payers and the cost of remediating those impacts.4
and5
(d)  So long as the enterprise qualifies as an enterprise for purposes6
of section 20 of article X of the state constitution, the revenue from the7
community access retail delivery fee AIR POLLUTION MITIGATION PER RIDE8
FEE collected by the enterprise is not state fiscal year spending, as defined9
in section 24-77-102 (17), or state revenues, as defined in section10
24-77-103.6 (6)(c), and does not count against either the state fiscal year11
spending limit imposed by section 20 of article X of the state constitution12
or the excess state revenues cap, as defined in section 24-77-103.613
(6)(b)(I)(D).14
SECTION 16. In Colorado Revised Statutes, 43-4-1302, amend15
(15); and repeal (19), (20), and (23) as follows:16
43-4-1302.  Definitions. As used in this part 13, unless the context17
otherwise requires:18
(15)  "Inflation" means the average annual percentage change in19
the United States department of labor, bureau of labor statistics, consumer20
price index for Denver-Aurora-Lakewood for all items and all urban21
consumers, or its applicable predecessor or successor index, for the five22
years ending on the last December 31 before a state fiscal year for which23
an inflation adjustment to be made to the air pollution mitigation per ride24
fee imposed by section 43-4-1303 (7) or the air pollution mitigation retail25
delivery fee imposed by section 43-4-1303 (8) begins.26
(19)  "Retail delivery" has the same meaning as set forth in section27
HB25-1144
-40- 43-4-218 (2)(e).1
(20)  "Retailer" has the same meaning as set forth in section2
39-26-102 (8).3
(23)  "Tangible personal property has the same meaning as set4
forth in section 39-26-102 (15). 5
SECTION 17. In Colorado Revised Statutes, 43-4-1303, amend6
(3) introductory portion, (3)(a), (5)(a), and (6)(h); and repeal (8) as7
follows:8
43-4-1303.  Nonattainment area air pollution mitigation9
enterprise - creation - board - powers and duties - rules - fees - fund.10
(3)  The business purpose of the enterprise is to mitigate the11
environmental and health impacts of increased air pollution from motor12
vehicle emissions in nonattainment areas that results from the rapid and13
continuing growth in retail deliveries made by motor vehicles and in14
prearranged rides provided by transportation network companies by15
providing funding for eligible projects that reduce traffic, including16
demand management projects that encourage alternatives to driving alone17
or that directly reduce air pollution, such as retrofitting of construction18
equipment, construction of roadside vegetation barriers, and planting trees19
along medians. To allow the enterprise to accomplish this purpose and20
fully exercise its powers and duties through the board, the enterprise may:21
(a)  Impose an air pollution mitigation per ride fee and an air22
pollution mitigation retail delivery fee as authorized by subsections (7)23
and (8) SUBSECTION (7) of this section;24
(5) (a)  The nonattainment area air pollution mitigation enterprise25
fund is hereby created in the state treasury. The fund consists of air26
pollution mitigation per ride fee revenue and air pollution mitigation retail27
HB25-1144
-41- delivery fee revenue credited to the fund pursuant to subsections (7) and1
(8) SUBSECTION (7) of this section, any monetary gifts, grants, donations,2
or other payments received by the enterprise, any federal money that may3
be credited to the fund, and any other money that the general assembly4
may appropriate or transfer to the fund. The state treasurer shall credit all5
interest and income derived from the deposit and investment of money in6
the fund to the fund. Money in the fund is continuously appropriated to7
the enterprise for the purposes set forth in this part 13 and to pay the8
enterprise's reasonable and necessary operating expenses, including the9
repayment of any loan received pursuant to subsection (5)(b) of this10
section.11
(6)  In addition to any other powers and duties specified in this12
section, the board has the following general powers and duties:13
(h)  To promulgate ADOPT rules for the sole purpose of setting the14
amounts AMOUNT of the air pollution mitigation per ride fee and the air15
pollution mitigation retail delivery fee at or below the maximum amounts16
authorized in this section; and17
(8) (a)  In furtherance of its business purpose, beginning in state18
fiscal year 2022-23, the enterprise shall impose, and the department of19
revenue shall collect on behalf of the enterprise, an air pollution20
mitigation retail delivery fee on each retail delivery. Each retailer who21
makes a retail delivery shall either collect and remit or elect to pay the air22
pollution mitigation retail delivery fee in the manner prescribed by the23
department in accordance with section 43-4-218 (6). For the purpose of24
minimizing compliance costs for retailers and administrative costs for the25
state, the department of revenue shall collect and administer the air26
pollution mitigation retail delivery fee on behalf of the enterprise in the27
HB25-1144
-42- same manner in which it collects and administers the retail delivery fee1
imposed by section 43-4-218 (3).2
(b)  For retail deliveries of tangible personal property purchased3
during state fiscal year 2022-23, the enterprise shall impose the air4
pollution mitigation retail delivery fee in a maximum amount of5
seven-tenths of one cent.6
(c) (I)  Except as otherwise provided in subsection (8)(c)(II) of this7
section, for retail deliveries of tangible personal property purchased8
during state fiscal year 2023-24 or during any subsequent state fiscal year,9
the enterprise shall impose the air pollution mitigation retail delivery fee10
in a maximum amount that is the maximum amount for the prior state11
fiscal year adjusted for inflation. The enterprise shall notify the12
department of revenue of the amount of the air pollution mitigation retail13
delivery fee to be collected for retail deliveries of tangible personal14
property purchased during each state fiscal year no later than March 1515
of the calendar year in which the state fiscal year begins, and the16
department of revenue shall publish the amount no later than April15 of17
the calendar year in which the state fiscal year begins.18
(II)  The enterprise is authorized to adjust the amount of the air19
pollution mitigation retail delivery fee for retail deliveries of tangible20
personal property purchased during a state fiscal year only if the21
department of revenue adjusts the amount of the retail delivery fee22
imposed by section 43-4-218 (3) for retail deliveries of tangible personal23
property purchased during the state fiscal year.24
SECTION 18. In Colorado Revised Statutes, 39-37-103, repeal25
(15)(a)(IV) as follows:26
39-37-103.  Definitions. As used in this article 37, unless the27
HB25-1144
-43- context otherwise requires:1
(15) (a)  "Purchase price" means the aggregate consideration2
valued in money paid or delivered or promised to be paid or delivered by3
the user or consumer in consummation of a sale, exclusive of:4
(IV)  Any retail delivery fee and enterprise retail delivery fees5
imposed or collected as specified in section 43-4-218;6
SECTION 19. In Colorado Revised Statutes, 43-4-1101, amend7
(1) introductory portion as follows:8
43-4-1101.  Legislative declaration. (1)  The general assembly9
hereby finds and declares that it is necessary, appropriate, and in the best10
interest of the state to use a portion of the general fund money that is11
dedicated for transportation purposes pursuant to section 24-75-219 to12
fund multimodal transportation projects and operations throughout the13
state and to use a portion of the money that is generated by the retail14
delivery fee imposed on the delivery of retail goods transported to the15
delivery site by motor vehicle pursuant to section 43-4-218 (3) to fund16
transportation-related greenhouse gas mitigation expenses throughout the17
state as authorized by this part 11 because, in addition to the general18
benefits that it provides to all Coloradans, a complete and integrated19
multimodal transportation system that includes greenhouse gas mitigation20
projects and services: 21
SECTION 20. In Colorado Revised Statutes, 43-4-1103, amend22
(1)(a) as follows:23
43-4-1103.  Multimodal transportation options fund - creation24
- revenue sources for fund - use of fund. (1) (a)  The multimodal25
transportation and mitigation options fund is hereby created in the state26
treasury. The fund consists of money transferred from the general fund to27
HB25-1144
-44- the fund pursuant to section 24-75-219 retail delivery fee revenue credited1
to the fund pursuant to section 43-4-218 (5)(a)(II), and any other money2
that the general assembly may appropriate or transfer to the fund. The3
state treasurer shall credit all interest and income derived from the deposit4
and investment of money in the fund to the fund.5
SECTION 21. Act subject to petition - effective date. This act6
takes effect at 12:01 a.m. on the day following the expiration of the7
ninety-day period after final adjournment of the general assembly; except8
that, if a referendum petition is filed pursuant to section 1 (3) of article V9
of the state constitution against this act or an item, section, or part of this10
act within such period, then the act, item, section, or part will not take11
effect unless approved by the people at the general election to be held in12
November 2026 and, in such case, will take effect on the date of the13
official declaration of the vote thereon by the governor.14
HB25-1144
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