Colorado Contractors Association Executive Director Tony Milo testified recently to the Joint House and Senate Transportation Committee on the advantages of transitioning to a Mileage Based User Fee that would replace the 22 cent per gallon state gas tax and vehicle registration fees. CCA and Move Colorado, a coalition of transportation funding advocates, are working to promote MBUFs by educating the public about its advantages. CCA and Move Colorado are planning to sponsor a MBUF pilot program in Colorado this year to demonstrate how they can be effectively implemented.
“The fuel tax has been a reliable, fair and equitable user fee for motorists for many years. However a number of factors have led to the fuel tax quickly becoming a failed model in terms of fairness, equity and ability to raise the funds adequate to provide Colorado motorists with an efficient, safe and reliable system of roads, streets and highways,” said Milo. “We believe that the answer for the future of funding our transportation system lies in a simple, fair and equitable Mileage Based User Fee. The current Colorado State Gas Tax and registration fees dedicated to the HUTF could be eliminated and replaced with a MBUF of about 1.7 cents per mile. While this would be a revenue neutral measure, it would capture a fair share of revenue from those driving alternate fuel vehicles and not further erode as the MPG of vehicles further increases. Furthermore, we think the case could be made to make the fee 2-3 cents per mile dedicating the funds to improving the transportation system providing great value for the motorists and those who wish to move goods and services throughout our state.”
There was much interest expressed by the Committee members and it is likely that they will devote more time to exploring the issue of MBUFs this summer. CCA and Move Colorado will continue to lead this effort in Colorado and keep its members informed.
To read Tony Milo’s full testimony on MBUF, click here.