Transportation Sales Tax Advances in Colorado Legislature

A bill to ask voters in November to increase the state sales tax by 0.62 percent to fund transportation projects passed its first House committee March 22 on a partisan vote, with Democrats in support and Republican opposed.

2 minute read

March 24, 2017, 9:00 AM PDT

By Irvin Dawid


I-70 Tunnel

Maciej Bledowski / Shutterstock

"The House Transportation and Energy Committee got its first look at a bill that would hike the state sales tax from 2.9 percent to 3.52 percent to pay for transportation projects managed by the Colorado Department of Transportation (CDOT), plus funding for sidewalks, bike paths and mass transit," reports Marianne Goodland for The Colorado Independent. "The measure passed on a party-line vote...with the committee’s eight Democrats in favor and five Republicans opposed."

The measure was rolled out on March 8 to strong opposition from conservative Republicans at the state Capitol and from limited government advocates like the libertarian [Denver-based] Independence Institute and the Koch brothers-funded Americans for Prosperity. But the measure has the sponsorship of state Capitol leaders, including Republican Senate President Kevin Grantham of Cañon City, Democratic Speaker of the House Crisanta Duran of Denver and the chairs of the House and Senate transportation committees.

One of the state's main backers for transportation investment, Fix Colorado Roads, has not taken a position on the measure, primarily because it doesn't require that general funds be earmarked for transportation. The group wants a "permanent, reliable and sufficient funding formula for our roads," but it doesn't propose a funding option, just designation of a percentage of general funds to transportation.

Why not a gas tax increase?

Colorado's gas tax, 22 cents per gallon was last increased in 1991, 26 years ago. It is 29 percent lower than the national average of 31.04 cents per gallon.

"Because of Colorado’s Taxpayer Bill of Rights, any agreement lawmakers reach to raise taxes to pay for roads will have to go to the ballot box for approval," reports Brian Eason for The Denver Post. "And gas taxes? They aren’t as popular with the voting public as they are with state legislatures."

“We’ve done quite a bit of polling over the last two years and have found that the prospect of voters increasing their own gas tax is very slim,” said Tony Milo, executive director for the Colorado Contractors Association (CCA), which for years has lobbied for a tax increase for roads. “They’re actually much more open to some other types of taxes than they are to gas taxes.”

So the sales tax, rather than the gas tax, was chosen because it polls better. But in the long term, it is possible that a road usage charge could become the road funding mechanism. A pilot program was launched in December and is accepting new enrollments.

Hat tip to AASHTO Daily Transportation Update.

Wednesday, March 22, 2017 in The Colorado Independent

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9, 2025 - Axios

Aerial view of suburban housing near Las Vegas, Nevada.

HUD Announces Plan to Build Housing on Public Lands

The agency will identify federally owned parcels appropriate for housing development and streamline the regulatory process to lease or transfer land to housing authorities and nonprofit developers.

March 17, 2025 - The Wall Street Journal

Canadian flag in foreground with blurred Canadian Parliament building in background in Ottawa, Ontario, Canada.

Has President Trump Met His Match?

Doug Ford, the no-nonsense premier of Canada's most populous province, Ontario, is taking on Trump where it hurts — making American energy more expensive.

March 11, 2025 - Toronto Star

Light rail train passing under apartments in Pasadena, California

California Bill Aims to Boost TOD

A bill proposed by Sen. Scott Wiener would exempt transit agencies from zoning rules near ‘high-quality’ transit stops and allow denser transit-oriented development.

March 18 - Streetsblog California

People walking at Pike Place Market, Seattle.

Report: One-Fifth of Seattle Households Are Car-Free

According to one local writer, the city’s low rate of car ownership should encourage officials to support public transit and reduce parking minimums.

March 18 - Seattle Bike Blog

Snow geese at the Sacramento National Wildlife Refuge, California

California Lawmakers Move to Protect Waterways

Anticipating that the Trump EPA will reinstate a 2017 policy that excluded seasonal wetlands and waterways from environmental protections.

March 18 - CALmatters

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.