Armed Services Member Motor Vehicle Taxes & Fees

Plain English Breakdown

The official text does not specify an effective date for when these changes begin.

Motor Vehicle Tax and Fee Exemptions for Military Members Serving Outside the U.S.

This law removes vehicle registration fees and sets a $1 ownership tax for military members serving outside the United States, while also waiving late renewal penalties if they are out of state when their registration expires.

What This Bill Does

• Exempts qualifying military members from paying motor vehicle registration fees while serving outside the United States.
• Sets the specific ownership tax at $1 for these vehicles instead of the standard amount.
• Removes the requirement for a member to sign an affidavit to get the fee exemption or reduced tax.
• Waives late fees if a member fails to renew their registration while serving outside Colorado.
• Requires members to show military orders or other proof accepted by the Department of Revenue.

Who It Names or Affects

• Members of the United States armed forces who own motor vehicles in Colorado and are serving outside the country or state.
• The Colorado Department of Revenue, which reviews evidence and sends notices about driving restrictions.
• Owners of personal cars, intrastate trucks, truck tractors, trailers, and semitrailers used to move property.

Terms To Know

Specific ownership tax

A yearly fee based on owning a vehicle that is set at $1 for qualifying military members serving outside the United States.

Affidavit

A written statement signed by the member to prove eligibility, which this law no longer requires.

Limits and Unknowns

• The exemption only applies while the military member is serving outside the United States.
• Members must not drive their vehicle during deployment as notified by the Department of Revenue.
• Qualifying evidence must be acceptable to the Department of Revenue, but specific document types are not listed in this summary.

Official Summary Text

Colorado law exempts the owner of a motor vehicle who is a member of the United States armed forces (member) from motor vehicle registration fees and sets the specific ownership tax at $1 while the member is serving outside the United States. This applies to personal motor vehicles and intrastate trucks, truck tractors, trailers, and semitrailers used to transport property. To qualify, the member must show the military order or evidence acceptable to the department of revenue (department) demonstrating that the member served outside the United States. The act repeals a requirement that the member sign an affidavit to qualify for the $1 specific ownership fee or to be exempt from the motor vehicle fee.
Colorado law exempts members from paying late fees for failing to renew a registration for a vehicle if the member was serving outside the state when the registration period expired. The act sets the requirement to qualify for a late fee exception by requiring the member to show the military order or evidence acceptable to the department demonstrating that the member served outside of the state.
The department will notify the member that the vehicle or motor vehicle must not be driven during deployment.
(Note: This summary applies to this bill as enacted.)