§ 43-4-1501 — Legislative declaration

Colorado § 43-4-1501

• Jurisdiction: Colorado
• Title 43: Transportation
• Art.: Financing

Text

(1) (a) (I) The general assembly finds and
declares that:

(A) Certain communities in the state serve as the distribution points for
almost all of the fuel transported in the state;

(B) Licensed fuel distributors rely on the hazardous mitigation corridor
infrastructure in these communities to support the economic functions of the state;
and

(C) Increasing requirements on fuel composition and blends will cause the
infrastructure in these communities to be relied upon even more.

(II) Therefore, the general assembly finds that it is appropriate to establish
the fuels impact reduction grant program to provide grants to those communities
for the improvement of their hazardous mitigation corridor infrastructure and for
projects related to the transportation of fuel within the state.

(b) Therefore, the general assembly finds that it is reasonable to establish
the fuels impact enterprise to assist in the administration of the programs
described in this subsection (1) and to collect the fees necessary to implement
these programs.

(2) The general assembly further finds and declares that:

(a) The fuels impact enterprise provides impact reduction services when, in
exchange for the payment of the fuels impact reduction fee by licensed fuel excise
tax distributors and licensed fuel distributors, it acts as authorized by this section
to provide assistance in improving hazardous mitigation corridors and projects
related to the transportation of fuel within the state;

(b) By providing impact reduction services as authorized by this section, the
fuels impact enterprise provides a benefit to fee payers by improving the
transportation of fuel in the state and monitoring vehicle emissions and, therefore,
operates as a business in accordance with the determination of the Colorado
supreme court in Colorado Union of Taxpayers Foundation v. City of Aspen , 2018 CO
36;

(c) Consistent with the determination of the Colorado supreme court in Nicholl v. E-470 Public Highway Authority , 896 P.2d 859 (Colo. 1995), the power to
impose taxes is inconsistent with enterprise status under section 20 of article X of
the state constitution, and, therefore, it is the conclusion of the general assembly
that the revenue collected by the fuels impact enterprise is generated by fees, not
taxes, because the fuels impact reduction fee imposed by the enterprise is:

(I) Imposed for the specific purpose of allowing the enterprise to defray the
costs of providing the services specified in this section; and

(II) Collected at rates that are reasonably calculated based on the costs of
the services provided by the enterprise; and

(d) So long as the enterprise qualifies as an enterprise for purposes of
section 20 of article X of the state constitution, the revenue from the fuels impact
reduction fee is not state fiscal year spending, as defined in section 24-77-102 (17),
or state revenues, as defined in section 24-77-103.6 (6)(c), and does not count
against either the state fiscal year spending limit imposed by section 20 of article X
of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).

Legislative History

Source: L. 2023: Entire part added, (SB 23-280), ch. 404, p. 2421, � 9, effective August 7.