TRALA-Supported Colorado Rental Legislation

• By: Shannon Davison
• On: 03/28/2014 10:42:18
• In: Legislative Bulletins

Senate Bill 55, authored by Senator Pat Steadman (D-31), Chairman of the Joint Budget Committee, requires all renters of short-term vehicles with a gross vehicle weight rating of 26,000 pounds or less to continue to pay the rental fee of $2 per day.  Owners of vehicles over 26,000 pounds will pay the road and bridge surcharge fees but will not collect the $2 per day rental fee.

As part of the FASTER bill (SB 108) that was passed in 2009, the Colorado Legislature created surcharge fees for road safety and bridges to support the highway infrastructure. In addition, the bill created a $2 per day motor vehicle rental fee on short term rental vehicles that was applicable to companies whose primary business was short term rentals of 45 days or less. If a company was responsible for collecting the motor vehicle rental fee then that company and their rental vehicles were exempt from the surcharge fees.  In effect, the law intended for a company or vehicle renter to pay one fee or the other.

The language in the original FASTER bill and its application created significant confusion and problems for truck renting and leasing companies as well as for the state, who administers the program.  There were difficulties distinguishing what defines a primary business involved in short term rentals, which vehicles are subject to the surcharge vs. the daily rental fee, and confusion when the term of a rental extends past 45 days.  As a result, the legislation had created higher administrative costs for both TRALA companies and the state.  It had also created a situation where some companies in the truck renting and leasing industry may be treated differently based on what definition was used for "primary business."

TRALA, working through its Light Truck Rental Council, came to unanimous consensus that the fees should be based on the weight of the vehicle and that primary business language should be removed completely.  Following this decision, TRALA met with legislators in Colorado to lobby for this proposed change in law and then subsequently, TRALA testified twice before the Colorado Legislature advocating that SB 55 be adopted. 

You may view a copy of the legislation by clicking here.

If you have any questions regarding the passage of this legislation, please contact Jake Jacoby at jjacoby@trala.org or at 703-299-9120.