TRALA-Requested Rental Fee Fairness Bill Introduced in Colorado Senate
Legislation to establish fairness in the implementation of the statewide $2 per day vehicle rental fee and road and bridge surcharge fees has been introduced in the Colorado State Senate at TRALA's request.
Senate Bill 55, authored by Senator Pat Steadman (D-31), Chairman of the Joint Budget Committee, would require all renters of vehicles with a gross vehicle weight rating of 26,000 pounds or less to continue to pay the short-term rental fee of $2 per day. Owners of vehicles over 26,000 pounds would pay the road and bridge surcharge fees but would 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 bill and its application has created significant confusion and problems for truck renting and leasing companies as well as for the state, who administers the program. There have been 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 has created higher administrative costs for both TRALA companies and the state. It has also created a situation where companies in the truck renting and leasing industry may be treated differently based on what definition is 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 primary business language should be removed completely. Following this, TRALA met with legislators in Colorado to lobby for this proposed change in law last year. SB 55 reflects the exact changes TRALA has long sought.
TRALA will also testify to the merits of SB 55 at a hearing of the Colorado State Senate on January 29, 2014 to educate lawmakers why this change in law is necessary and to illustrate that this legislation will not lead to any loss of revenue by the state as it ultimately creates a level playing field for all TRALA members.
To view a copy of SB 55, please click here.
If you have any questions regarding this bill or the issue overall, please contact Jake Jacoby at email@example.com or at 703-299-9120.