TAX NEWS - JUNE 2009

Colorado tax: New Daily Fee on Car Rentals Effective July 1, 2009

Beginning July 1, 2009, rentals of motor vehicles in Colorado are subject to a $2.00 rental fee for each day rented. Motor vehicles rented for periods of less than 45 days, including renewals, are subject to the fee. This includes cars, trucks, recreational vehicles (RVs), motorcycles, and motor scooters rented less than 45 days. This rental fee was enacted by the passage and signing of Colorado Senate Bill 09-108.

Businesses will collect this daily rental fee from their customers and the fee should be stated separately on the customer invoice as the "Colorado Road Safety Program Fee." This fee should not be included in the amount subject to state and local sales tax. Businesses must remit the fees to Colorado Department of Revenue on a monthly basis.