11/21/07-A special panel in Colorado is calling for five tax and fee increases to help pay for transportation projects throughout the state. They can be considered by the Legislature during the session that begins in January.
The Blue Ribbon Transportation Commission appointed by Gov. Bill Ritter has decided the state should raise $1.5 billion a year for roads and transit. The group recommended the state boost a combination of fees and the fuel, sales and severance taxes, the Rocky Mountain News reported.
The state’s transportation budget is about $1 billion a year. It can be used for roads and other needs.
Commission members are calling for a 13-cent-per-gallon increase in the state’s fuel tax rates and allow it to increase annually with inflation. Currently, the diesel tax is 20.5 cents-per-gallon and the gas tax is 22 cents-per-gallon.
Another option being touted is to increase the sales and use tax by 0.35 cents and boost the natural resources severance tax on companies that extract minerals from the ground by 1.7 percent. Increasing vehicle registration fees by $100 a year also has been suggested.
About $540 million of revenues would go for maintenance and safety efforts intended to increase road surfaces, reduce traffic congestion, fix shoulders and maintain bridges. Another $290 million would go for local projects while nearly $110 million would be used for transit and other projects.
The panel also recommended further study into a fee-per-mile-driven program for motorists. The program would replace charging a fuel tax.
Ritter must decide whether to pursue putting the tax-increase proposals on the 2008 ballot. Voters rejected the most recent attempt to raise the fuel tax in 1998.
The vehicle registration fee increase would not require voter approval.

10/31/07-Talk in Colorado about how to pay for billions of dollars of transportation work includes a suggestion to double the fuel tax rates.
A transportation panel appointed by Gov. Bill Ritter has decided the state should consider spending $2 billion annually to help maintain and build highways. The Governor’s Task Force on Transportation Finance is recommending a mix of funding sources, including higher taxes on diesel and gasoline, as well as sales and mineral severance taxes.
Another option is to charge a “highway maintenance” registration fee on all vehicles.
The panel said $2 billion a year would provide enough revenue for significant congestion and intrastate transit projects. A minimum of $500 million a year is needed simply to maintain existing roads, the Rocky Mountain News reported.
In order to reach $2 billion a year, panel members said that tax increases would need to be implemented, including increasing the fuel tax rates to 44 cents per gallon. The current rate for diesel is 20.5 cents while the tax on gas is 22 cents.
The task force also suggested increasing vehicle registration fees by an average of $100 annually while the sales tax would increase 0.55 percent and the natural resources severance tax would be increased by 2 percent.
The task force is scheduled to make final recommendations to Ritter on a range of funding options on Nov. 15. They could be brought up during the regular session that begins after the first of the year.
The governor is keeping his cards close to his vest when it comes to talk about increasing the state’s fuel tax rates to pay for road work. Ritter said he is withholding comment so that his opinion doesn’t pre-empt the work of the panel.
Any effort to increase taxes in the state would need to pass muster with voters before it could take effect. Voters rejected the most recent attempt to raise the fuel tax in 1998.

8/13/07-Gov. Bill Ritter is keeping his cards close to his vest when it comes to talk about increasing the state’s fuel tax rates to pay for road work.
The Democratic governor said he is withholding comment so that his opinion doesn’t pre-empt the work of a transportation panel he appointed this year. The panel was put together to consider all options for maintaining roads. The panel will offer recommendations to Ritter in November.
Officials with the Colorado Department of Transportation estimate it will cost $65 billion to maintain the existing system of roads and bridges through 2030. Another $40 billion is needed to make improvements to keep pace with population growth, The Denver Post reported.
The agency’s current fiscal year budget is $1 billion while the overall state budget is more than $17 billion.
In addition to the fuel tax, other funding proposals drawing discussion include increasing the sales and income tax rates, as well as creating a tax on lodging and auto rentals. Charging drivers a tax on vehicle miles traveled is another idea.
Many members of the Blue Ribbon Transportation Panel say there is little hope to raise revenues without boosting tax rates, The Gazette in Colorado Springs reported.
Any effort to increase taxes in the state would need to pass muster with voters before it could take effect. Voters rejected the most recent attempt to raise the fuel tax in 1998.