A panel charged by Gov. Bill Ritter with coming up with a plan to raise billions of dollars for transportation is recommending a mix of funding sources, including higher state fuel, sales and mineral severance taxes.
Another revenue raiser could be a new “highway maintenance” registration fee on all vehicles.
The group also wants the state to consider imposing “visitor fees” for funding transportation improvements, such as tacking on an additional $5 a day to hotel and rental-car bills.
Such a fee would raise about $200 million a year for roads and possibly transit projects, by panel estimates.
The Transportation Finance and Implementation Panel was created by Ritter eight months ago.
The group is led by state Treasurer Cary Kennedy, Colorado Transportation Commission chairman Doug Aden and Greeley businessman Bob Tointon.
On Thursday, panelists considered options for raising $500 million, $1 billion or $1.5 billion a year in new money for transportation. Final recommendations will be made to Ritter on Nov. 15.
With transportation needs in Colorado reaching into the tens of billions of dollars, the group focused on crafting a mix of taxes and fees to raise at least $1.5 billion a year.
One proposal that will probably be sent to Ritter called for raising Colorado’s gas and diesel-fuel tax by 22 cents a gallon.
Colorado’s tax on gasoline is 22 cents a gallon, and the tax on diesel is 20.5 cents a gallon.
Adding another 22-cents-a-gallon tax to both fuels would raise an additional $600 million for state and local roads.
Panelists said another $300 million could be raised by requiring vehicle owners to pay an average of $60 a year as a highway maintenance fee when they register their vehicle.
The annual vehicle registration fees now average less than $30.
Some panelists favored higher fuel taxes and the road maintenance fee because they amount to “user fees” – paid by those who buy fuel and register vehicles.
Others in the group said the transportation finance package should include some form of general tax increase since it could be used to pay for transit projects. The fuel tax by law is earmarked for roads.
One scenario that is likely to be forwarded to Ritter calls for a 0.35 percentage point hike in the current 2.9 percent state sales tax, to raise another $312 million for transportation.
Russ George, executive director of the Colorado Department of Transportation, urged panelists to seek a portion of a possible state severance-tax increase for transportation.
Severance taxes are paid by energy companies for the extraction of oil, gas and other natural resources.
The Colorado General Assembly is expected to consider a severance-tax hike in the upcoming 2008 session. Legislative action also would be needed to impose the highway maintenance fee; to increase gasoline and diesel-fuel taxes, and the sales tax, would require approval of Colorado voters.
Jeffrey Leib: 303-954-1645 or jleib@denverpost.com
