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HB26-1200 • 2026

Armed Services Member Motor Vehicle Taxes & Fees

Current 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 mem

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. L. Garcia Sander, Rep. M. Martinez, Sen. B. Pelton, Rep. J. Bacon, Rep. A. Boesenecker, Rep. S. Bottoms, Rep. J. Caldwell, Rep. C. Clifford, Rep. M. Duran, Rep. C. Espenoza, Rep. L. Goldstein, Rep. E. Hamrick, Rep. J. Jackson, Rep. D. Johnson, Rep. R. Keltie, Rep. M. Lindsay, Rep. B. Marshall, Rep. T. Mauro, Rep. K. Nguyen, Rep. J. Phillips, Rep. C. Richardson, Rep. M. Rutinel, Rep. G. Rydin, Rep. M. Soper, Rep. T. Story, Rep. B. Titone, Rep. R. Weinberg, Rep. T. Winter, Rep. D. Woog, Sen. M. Baisley, Sen. M. Ball, Sen. J. Bridges, Sen. S. Bright, Sen. J. Carson, Sen. M. Catlin, Sen. J. Coleman, Sen. L. Cutter, Sen. L. Daugherty, Sen. T. Exum, Sen. L. Frizell, Sen. J. Gonzales, Sen. N. Hinrichsen, Sen. I. Jodeh, Sen. C. Kipp, Sen. B. Kirkmeyer, Sen. C. Kolker, Sen. L. Liston, Sen. J. Marchman, Sen. K. Mullica, Sen. R. Pelton, Sen. J. Rich, Sen. D. Roberts, Sen. R. Rodriguez, Sen. C. Simpson, Sen. M. Snyder, Sen. M. Weissman, Sen. L. Zamora Wilson
Last action
2026-03-30
Official status
Senate Third Reading Passed - No Amendments
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about enforcement mechanisms or consequences if a vehicle is driven during deployment.

Motor Vehicle Taxes and Fees for Armed Services Members

This bill removes the requirement that military personnel sign an affidavit to receive tax exemptions on their vehicles while serving outside the United States.

What This Bill Does

  • Removes the requirement that military personnel sign an affidavit to receive a $1 ownership tax rate while deployed overseas.
  • Eliminates the need for military personnel to sign an affidavit to be exempt from motor vehicle registration fees when serving outside the United States.

Who It Names or Affects

  • Members of the United States armed forces serving outside the United States
  • The Department of Revenue in Colorado

Terms To Know

Affidavit
A written statement sworn to be true, often used as legal evidence.
Deployment
Sending military personnel or units to a specific location for duty.

Limits and Unknowns

  • The bill does not specify what happens if the vehicle is driven during deployment.
  • It's unclear how the changes will be enforced by the Department of Revenue.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.005

Second Reading

Passed [**]

Plain English: The amendment requires the department to inform vehicle owners who are members of the United States armed forces about restrictions on operating their vehicles when they receive a reduced tax rate or exemption.

  • Adds language requiring notification to vehicle owners that their motor vehicle must not be operated on roadways during periods when they qualify for a reduced ownership tax rate.
  • Adds similar notification requirements for when the vehicle is exempt from registration fees.
  • The amendment does not specify how or through what means the department will notify the owners, such as email, letter, or phone call.

Bill History

  1. 2026-03-30 Senate

    Senate Third Reading Passed - No Amendments

  2. 2026-03-27 Senate

    Senate Second Reading Passed - No Amendments

  3. 2026-03-24 Senate

    Senate Committee on Finance Refer Unamended to Senate Committee of the Whole

  4. 2026-03-17 Senate

    Introduced In Senate - Assigned to Finance

  5. 2026-03-12 House

    House Third Reading Passed - No Amendments

  6. 2026-03-11 House

    House Second Reading Special Order - Passed with Amendments - Floor

  7. 2026-03-10 House

    House Second Reading Laid Over Daily - No Amendments

  8. 2026-03-05 House

    House Committee on Finance Refer Unamended to House Committee of the Whole

  9. 2026-02-11 House

    Introduced In House - Assigned to Finance

Official Summary Text

Current 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 and sign an affidavit that the motor vehicle will not be driven while the tax rate applies.
Section 1
of the bill repeals the requirement that the member sign the affidavit to pay the $1 specific ownership fee.
Section 3
repeals the requirement that the member sign the affidavit to be exempt from the motor vehicle fee.
Current 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.
Section 2
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 United States.

The department will notify the member that the vehicle or motor vehicle must not be driven during deployment.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text
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 -
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.
________
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) I N 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