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HB 1430

Transportation Funding Adjustments

2026 Regular Session

If voters approve, the bill temporarily cuts gas/road taxes and fees while creating the Support Road Transportation Fund to balance transportation spending with general-fund needs.

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Bill Summary · HB 1430

Summary of HB 1430 (2026A) — Colorado: Transportation Funding Adjustments

Note: This summary reflects the introduced version. It contemplates a voter-approved constitutional initiative affecting transportation funding and outlines accompanying statutory adjustments.

Purpose and intent

  • The bill is titled the "Colorado Budget Protection Act" and is designed to respond to a proposed constitutional initiative related to transportation funding. If voters approve the initiative, HB 1430 reduces several transportation-related taxes and fees for a period from January 1, 2027, through July 1, 2030. The overarching aim is to avoid increasing state general fund obligations for transportation by offsetting any increased transportation funding with lower state tax/fee rates on transportation, thereby protecting general fund programs (e.g., K-12, health care, higher education).

Key provisions and changes

Transportation funding adjustments (contingent on voter approval)

  • Gasoline excise tax: Reduced from 22 cents per gallon to 14 cents per gallon ( Jan 1, 2027 – Jul 1, 2030).
  • Special fuel excise tax: Reduced from 21.5 cents to 13 cents per gallon (same period).
  • Road usage fee (gasoline-based): Initial reduction from 6 cents to 4 cents per gallon; further adjustments as needed to offset diverted state revenue.
  • Establishment of a Support Road Transportation Fund (SRTF) contingent on voter approval. Fund uses:
    • Replaces certain General Fund transfers to the State Highway Fund and to finance assets or certificates of participation (COPs).
    • After transfers, remaining funds allocated as:
    • 60% to the State Highway Fund
    • 23% to counties for transportation expenses
    • 17% to cities and incorporated towns for transportation expenses
  • Clarification that state revenue supporting road transportation does not include enterprise fee revenue.

Transfers and financing mechanics

  • Transfers from the General Fund and from the SRTF to the State Highway Fund:
    • July 1, 2026: $50.5 million transfer from the General Fund to the State Highway Fund.
    • January 1, 2027 (or as soon as available): $50 million transferred from the SRTF to the State Highway Fund.
    • July 1, 2027 through July 1, 2031: $100 million transfer annually from the General Fund or SRTF to the State Highway Fund (depending on the applicable source).
    • July 1, 2031: $100 million transfer from the General Fund to the State Highway Fund (final explicit annual transfer in the sequence).
  • A subset of transfer amounts (the “d” transfers) are earmarked to offset environmental/health impacts of vehicle emissions in nonattainment areas, funding related projects to reduce vehicle miles traveled or air pollution.

Vehicle registration and fees (temporary adjustments)

  • Registration fees, late fees, and related adjustments are modified for a multi-year window (2027–2030) to help offset reduced fuel/road usage revenue. Specifics include:
    • New/adjusted fee schedules for passenger vehicles and various vehicle classes, including changes to fees for newer vs. older model years.
    • Electric vehicle-related fees (electric motor vehicle road usage fees) and plug-in hybrid fees are adjusted with tiered schedules through 2031–2032, with inflationary adjustments built in.
    • New or revised surcharges and the possibility of structured fees by vehicle weight and type (e.g., motorcycles, autocycles, passenger cars, buses).

Road usage and surcharge authorities

  • Road usage fee rates for gasoline and special fuels (as described above) are forecasted and subject to adjustments to balance the reduced revenue with required transportation spending.
  • The act directs the Joint Budget Committee to coordinate with revenue forecasts to determine appropriate road usage fee rates for the next fiscal year, ensuring that the total state revenue dedicated to transportation remains balanced with general fund obligations.

Administration and governance

  • The act creates and defines the “Support Road Transportation Fund” with specified allocation rules and annual appropriation mechanics.
  • It adds and clarifies provisions related to financed purchases of assets or COPs, including how obligations are funded (subject to annual appropriation and availability of money).

Affected parties and entities

  • State government: Department of Transportation, State Treasurer, Transportation Commission, and the General Assembly.
  • Fiscal authorities: State Highway Fund, Support Road Transportation Fund (new), and related state budget processes.
  • Local governments: Colorado counties, cities, and incorporated towns receiving a defined share (60% to Highway Fund, 23% to counties, 17% to cities/towns).
  • Vehicle owners and users: Gasoline and special fuel users, vehicle registration holders, EV and plug-in hybrid owners, and operators of various vehicle classes (motorcycles, autocycles, passenger vehicles, buses, etc.).
  • Environmental health programs: Funds dedicated to mitigating air pollution and reducing vehicle miles traveled in nonattainment areas.

Procedural and timeline notes

  • Effective date is contingent on voter approval of the constitutional initiative in the next general election.
  • If approved, the act becomes effective on the date of the governor’s official declaration of the vote or January 1, 2027, whichever is later.
  • The bill includes a number of sunset-like date anchors (2030–2032) for certain fee structures, with specific repeal dates and transitional provisions.
  • Non-specified provisions indicate ongoing coordination with revenue forecasting and annual budgeting to determine rates and funding levels for the next state fiscal year.

Bottom line

HB 1430 proposes a package aimed at preserving general fund commitments by temporarily reducing gas/diesel-related taxes and road fees if voters approve a constitutional initiative reallocating revenue toward transportation. It creates a dedicated fund (SRTF) to manage transfers and distributions, alters vehicle-related fees and surcharges with phased timelines, and ties funding to transportation outcomes and environmental mitigation, all while maintaining fiscal balance between transportation needs and core state services.

Compiled from official sources — confirm details with the bill’s official record.

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