HB 1200

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1200
     BY REPRESENTATIVE(S) Garcia Sander and Martinez, Bacon,
     Boesenecker, Bottoms, Caldwell, Clifford, Duran, Espenoza, Goldstein,
     Hamrick, Jackson, Johnson, Keltie, Lindsay, Marshall, Mauro, Nguyen,
     Phillips, Richardson, Rutinel, Rydin, Soper, Story, Titone, Weinberg,
     Winter T., Woog;
     also SENATOR(S) Pelton B., Baisley, Ball, Bridges, Bright, Carson, Catlin,
     Cutter, Daugherty, Exum, Frizell, Gonzales J., Hinrichsen, Jodeh, Kipp,
     Kirkmeyer, Kolker, Liston, Marchman, Mullica, Pelton R., Rich, Roberts,
     Rodriguez, Simpson, Snyder, Weissman, Zamora Wilson, Coleman.
     CONCERNING REQUIRED PAYMENTS UPON REGISTRATION OF A VEHICLE FOR
          A MEMBER OF THE UNITED STATES ARMED FORCES SERVING OUTSIDE
          THE STATE.
     Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1. In Colorado Revised Statutes, 42-3-107, amend
     (8)(b)(II) introductory portion, (8)(b)(II)(A), (10)(b)(II) introductory
     portion, and (10)(b)(II)(A); repeal (8)(b)(II)(B) and (10)(b)(II)(B); and add
     (8)(b)(V) and (10)(b)(V) as follows:
             42-3-107. Taxable value of classes of property - rate of tax -
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
when and where payable - department duties - apportionment of tax
collections - definitions - rules - repeal.
       (8) (b) (II) In order to qualify for the tax rate imposed by this
paragraph (b) SUBSECTION (8)(b), the owner must:
       (A) Show the department military orders to serve outside the United
States or any evidence acceptable to the department that the owner served
outside the United States. and
       (B) File a signed affidavit that the motor vehicle will not be operated
on a highway when the tax rate applies.
      (V) THE OWNER NEED NOT SIGN AN AFFIDAVIT TO QUALIFY FOR THE
TAX RATE IMPOSED BY THIS SUBSECTION (8)(b). THE DEPARTMENT SHALL
NOTIFY THE OWNER THAT THE MOTOR VEHICLE MUST NOT BE OPERATED ON
THE ROADWAYS WHEN THE REDUCED TAX RATE APPLIES.
       (10) (b) (II) In order to qualify for the tax rate imposed by this
paragraph (b) SUBSECTION (10)(b), the owner must:
       (A) Show the department military orders to serve outside the United
States or any evidence acceptable to the department that the owner served
outside the United States. and
       (B) File a signed affidavit that the motor vehicle will not be operated
on a highway when the tax rate applies.
      (V) THE OWNER NEED NOT SIGN AN AFFIDAVIT TO QUALIFY FOR THE
TAX RATE IMPOSED BY THIS SUBSECTION (10)(b). THE DEPARTMENT SHALL
NOTIFY THE OWNER THAT THE MOTOR VEHICLE MUST NOT BE OPERATED ON
THE ROADWAYS WHEN THE REDUCED TAX RATE APPLIES.
       SECTION 2. In Colorado Revised Statutes, 42-3-112, amend (3)
introductory portion and (3)(b) as follows:
       42-3-112. Failure to pay tax - penalty - rules.
      (3) The late fee described in subsection (1) of this section shall not
be imposed on a vehicle subject to taxation under this article ARTICLE 3 if:
PAGE 2-HOUSE BILL 26-1200
       (b) (I) The person INDIVIDUAL who owns the vehicle is in the active
military service of the United States and is serving outside the state when
a registration period and grace period for renewal of registration for the
vehicle end and the vehicle is not operated on any public highway of the
state between the time the registration period and grace period end and the
time the vehicle is reregistered.
       (II) IN ORDER TO QUALIFY UNDER THIS SUBSECTION (3)(b) FOR
EXEMPTION FROM PAYMENT OF THE LATE FEE DESCRIBED IN SUBSECTION (1)
OF THIS SECTION, THE OWNER OF THE VEHICLE MUST SHOW THE DEPARTMENT
MILITARY ORDERS TO SERVE OUTSIDE THE STATE OR ANY EVIDENCE
ACCEPTABLE TO THE DEPARTMENT THAT THE OWNER SERVED OUTSIDE THE
STATE. THE OWNER NEED NOT SIGN AN AFFIDAVIT TO QUALIFY UNDER THIS
SUBSECTION (3)(b) FOR EXEMPTION FROM PAYMENT OF THE LATE FEE
DESCRIBED IN SUBSECTION (1) OF THIS SECTION. THE DEPARTMENT SHALL
NOTIFY THE OWNER THAT THE VEHICLE MUST NOT HAVE BEEN USED ON THE
ROADWAYS WHEN THE EXEMPTION APPLIES.
       (III) Nothing in this paragraph (b) SUBSECTION (3)(b) shall be
construed to exempt the owner of such a vehicle from paying any fees
imposed pursuant to this article ARTICLE 3 other than the late fee before
again operating the vehicle on a public highway in this state or from paying
any taxes imposed pursuant to this article ARTICLE 3.
       SECTION 3. In Colorado Revised Statutes, 42-3-314, amend (2)(a)
and (4); and repeal (2)(b) as follows:
       42-3-314. Military deployment.
     (2) Qualifications. In order for a motor vehicle to qualify for the
exemption from registration fees under this section, the owner must:
       (a) Show the department military orders to serve outside the United
States or any evidence acceptable to the department that the owner served
outside the United States. and
       (b) File a signed affidavit that the motor vehicle will not be operated
on a highway during the exemption period.
       (4) Violations. A person shall not operate the motor vehicle during
PAGE 3-HOUSE BILL 26-1200
the time covered by the affidavit filed THE MOTOR VEHICLE IS EXEMPT FROM
PAYING FEES under subsection (2) of this section. A violation of this section
is a class B traffic infraction.
        SECTION 4. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly (August 12, 2026, if adjournment sine die is on May 13,
2026); except that, if a referendum petition is filed pursuant to section 1 (3)
of article V of the state constitution against this act or an item, section, or
part of this act within such period, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
held in November 2026 and, in such case, will take effect on the date of the
official declaration of the vote thereon by the governor.
PAGE 4-HOUSE BILL 26-1200
       (2) This act applies to taxes and fees due on or after the applicable
effective date of this act.
____________________________  ____________________________
Julie McCluskie  James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
____________________________  ____________________________
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
       APPROVED________________________________________
                          (Date and Time)
                   _________________________________________
                  Jared S. Polis
                  GOVERNOR OF THE STATE OF COLORADO
PAGE 5-HOUSE BILL 26-1200