Committee rejects repeal of Colorado retail delivery fee after fiscal and equity debate

Representative Wuge introduced HB 12‑66 to repeal Colorado’s retail delivery fee — a 28¢ per delivery charge applied to retail motor‑vehicle deliveries — arguing the fee is regressive and disproportionately burdens low‑income households, people with disabilities and rural residents.

A small‑business seller, Kristen Hartman, told the committee the fee deters customers and penalizes home‑based online sellers: "The Colorado retail delivery fee penalizes Colorado home‑based sellers," she said, and urged a yes vote. The sponsor framed the repeal as an affordability measure for residents who rely on deliveries.

State agencies, environmental groups and transportation advocates urged the committee to oppose repeal, citing concrete revenue losses and program impacts. Emily Hathaway of CDOT said the fee funds core maintenance and discretionary matching dollars, warning the bill would reduce transportation funding and could hamper CDOT's ability to draw down federal grants. CDOT testimony highlighted that portions of the fee support the State Highway Fund and bridge/tunnel repairs; one witness cited a $12.9 million allocation to bridge and tunnel repairs that would be lost if the fee were eliminated. Several witnesses testified this funding also supports EV charging, clean transit and other multimodal programs created under SB 21‑260.

Conservation Colorado and the Colorado Energy Office described the fee as a key tool for the state's climate and equity goals; local officials and transit providers described projects enabled by the fee including e‑bike sharing, DC fast‑charging plazas and fleet electrification grants. The League of Women Voters and others warned that repeal would remove a dedicated revenue stream for transit, maintenance and equity programs; in testimony the League estimated the 2021 package of fees created roughly $200 million a year in transportation funding and said this repeal would remove a large portion of that revenue.

Committee debate focused on tradeoffs between affordability and transportation funding. After discussion and roll call, committee members reported the bill failed (a 7‑4 result as reported in the hearing record). Committee then accepted a motion to postpone HB 12‑66 indefinitely on a reverse roll call, removing the bill from further consideration in this committee for the session.