Colorado Committee Advances Bill to Repeal Controversial Retail Delivery Fees

The House Transportation, Housing & Local Government Committee convened on February 18, 2025, to discuss significant legislative matters, including the repeal of retail delivery fees and the implications for Colorado's transportation funding.

The meeting began with a discussion on House Bill 251110, which aims to address concerns raised by representatives from some of Colorado's poorest counties. The bill sponsor emphasized the need for consistency with existing regulations and sought the committee's support. Following a motion to advance the bill to the Committee of the Whole, it passed unanimously with 12 votes in favor.

The committee then shifted focus to House Bill 1144, which proposes the repeal of retail delivery fees. The bill's sponsor articulated that these fees disproportionately affect rural residents, seniors, and individuals with mobility issues, labeling them as an unfair tax on Coloradans. The sponsor expressed a commitment to lowering the cost of living and indicated openness to amendments that could alleviate the financial burden on constituents.

However, opposition to the bill was strong. Various stakeholders, including representatives from the Colorado Department of Transportation (CDOT) and environmental organizations, voiced concerns about the potential loss of funding for critical transportation infrastructure. They highlighted that the retail delivery fee is a vital source of revenue for maintaining roads, bridges, and transit services. Alana Miller from the Natural Resources Defense Council argued that repealing the fee would shift the financial burden to local governments and taxpayers, undermining efforts to improve transportation systems and air quality.

Further testimony from CDOT representatives underscored the financial implications of the repeal, estimating a potential loss of $53.8 million in state transportation funding for the fiscal year 2026-2027. They emphasized that this funding is essential for maintenance activities that are not eligible for federal support.

The committee also heard from small business owners who supported the repeal, arguing that the retail delivery fee hampers their ability to compete in the online marketplace. They contended that the fee penalizes local sellers and their customers, ultimately harming grassroots economic development.

As the meeting concluded, the committee faced a clear divide between proponents advocating for the repeal of the retail delivery fee and opponents warning of the detrimental effects on Colorado's transportation infrastructure and funding. The discussions highlighted the ongoing challenges of balancing fiscal responsibility with the needs of constituents in a state grappling with economic pressures. The committee's next steps remain to be determined as they continue to navigate these complex issues.