Contingent upon voter approval at the November 2026 general election of a proposed initiative to amend the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation (proposed initiative), from January 1, 2027, through July 1, 2030, the act reduces:The excise tax on gasoline from $0.22 per gallon to $0.14 per gallon;The excise tax on special fuel from $0.205 per gallon to $0.13 per gallon; Certain vehicle registration fees, including late fees; andThe road usage fees from $0.06 per gallon to $0.04 per gallon and then, beginning in state fiscal year 2027-28, as necessary to offset the amount of state revenue diverted to transportation uses as the result of the proposed initiative. The act creates the support road transportation fund (fund) contingent upon voter approval of the proposed initiative. The fund consists of state revenue dedicated to road transportation by the proposed initiative. Money in the fund is used to replace certain transportation-related general fund transfers for payments for the financed purchase of assets or certificate of participation agreements, and to replace certain general fund transfers to the state highway fund. The money remaining in the fund after making these transfers is allocated as follows:60% is paid to the state highway fund;23% is paid to counties for certain transportation expenses; and17% is paid to cities and incorporated towns for certain transportation expenses. The act clarifies that state revenue collected to support road transportation, as defined in the proposed initiative, does not include enterprise fee revenue. The act creates the road enterprise to complete preventive maintenance, repair, rehabilitation, and reconstruction projects to improve the condition of the roadway surface of the state highway system. The road enterprise is authorized to impose fees for oversize and overweight vehicles and longer vehicle combinations. The creation of the road enterprise is not contingent upon voter approval of the proposed initiative. Contingent upon the proposed initiative being withdrawn or not submitted for the November 2026 general election, the act creates the transportation funding working group to evaluate and make recommendations to the general assembly, the transportation commission, and the governor concerning funding state and local surface transportation maintenance, repair, capacity, and safety. Lastly, the act reduces the July 1, 2026, transfer from the general fund to the state highway fund from approximately $50 million to $500,000.(Note: This summary applies to this bill as enacted.)
Under current law, the state treasurer is required to transfer $10.5 million from the general fund to the multimodal transportation and mitigation options fund every July 1 beginning on July 1, 2024, and ending on July 1, 2031. The act eliminates this annual transfer only for 2026, 2027, and 2028. The act decreases the cash funds appropriation from the multimodal transportation and mitigation options fund created in the annual general appropriation act for the 2026-27 state fiscal year made to the department of transportation for multimodal transportation projects by $10.5 million.(Note: This summary applies to this bill as enacted.)
Under current law, 28.9% of the revenue the state collects from the retail delivery fee is credited to the multimodal transportation and mitigation options fund (fund). Of the money from the retail delivery fee that is credited to the fund, currently 85% is allocated to the commission for local multimodal projects and 15% is allocated to the commission for state multimodal projects. Beginning on July 1, 2026, the act changes how the fund allocates and expends retail delivery fee revenue between state and local multimodal projects so that 70% of the fund is allocated to the commission for local multimodal projects and 30% of the fund is allocated to the commission for state multimodal projects.(Note: This summary applies to this bill as enacted.)
The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of transportation.(Note: This summary applies to this bill as enacted.)
Beginning on July 1, 2026, the bill directs state-level permit fees and supplemental surcharges for oversize and overweight vehicles and longer vehicle combinations to the freight cash fund (fund), which is newly created in the office of freight mobility and safety (office) in the transportation development division of the department of transportation (department). The fund is appropriated for use by the office for the following main purposes:For funding freight-related projects; andTo support the office in functions related to freight projects, movement, and infrastructure, including the administrative costs of the office.In funding freight-related projects from the fund, the office is required to attempt to direct money in a manner that is proportional to the amount of freight routes and the impact of freight traffic in the affected community or region of the state.The office may also use money in the fund to create and maintain a centralized online permitting system for oversize permits, overweight permits, and other types of freight or transport permits issued by the department, the Colorado state patrol, or any local government. The centralized permitting system must allow a person to apply for and be issued all necessary state and local permits for a route in a single transaction and pay for all associated permit fees and surcharges for that route in a single transaction. By September 1, 2027, the office is required to conduct a feasibility study relating to the centralized permitting system and must report to the transportation legislation review committee during the 2027 legislative interim on the completed feasibility study and any progress toward implementing the centralized permitting system. The office is required to implement the centralized permitting system by July 1, 2029, either by creating a new online permitting system or by modifying an existing online permitting system.(Note: This summary applies to this bill as introduced.)
