Proposed gas tax increase suspended, vehicle registrations costs cut in half
COLORADO SPRINGS, Colo., (KRDO) - On July 1, 2022, a new law goes into effect that could help Coloradans find some relief at the gas pump. However, that doesn't mean gas prices will dwindle.
Gas prices are slightly higher than they were last month and there is no sign of them going down either. House Bill 22-1351, Temporary Reduce Road User Charges, essentially aims to cut the gas tax to relieve some stress.
This law suspends a scheduled increase through the state gas tax from 22 cents a gallon to 24 cents a gallon this summer.
Senator Nick Hinrichsen (D) in Colorado representing District 3 says this might not seem like a lot, but it's their latest effort in helping stabilize the economy.
"For an average Colorado family we are looking at the difference of fifty dollars over the course of the year but this is one bill of dozens and it keeps our state gas taxes at the 11th lowest in the nation in the process of doing that," added Hinrichsen.
Skyler Mckinley with AAA further explained how HB22-1351 will not save drivers much at the pump at this moment, it's meant to help in the long-term.
"The bad news is that we are not going to notice a lot of savings, but we certainly will notice the fact that fees and taxes are not increasing at least until the economy stabilizes a little bit."
This law will delay the implementation of a new group of fees as part of infrastructure legislation passed in 2021.
"In terms of relief I do not think folks will notice not paying for something they weren't already paying," added Mckinley.
Additionally, the costs of motor vehicle registration will be reduced.
The road safety surcharge is a motor vehicle registration fee that currently costs between $16 and $39 per vehicle depending on the vehicle's weight. This will be cut in half for the next year.
"Now that we see the rise in inflation because of the Russian invasion in Ukraine and other inflationary pressures, it is working-class families that are feeling the burden of that the most so what we are looking to do is how at the state level can we ease the burden on working families," added Hinrichsen.
These fees and taxes are set to remain steady until April 2023.
To read more about the law, click here.
