Colorado won’t meet Biden’s demand for state gas tax holiday, leaders say

President Biden is asking states to droop gasoline taxes, however Colorado will not instantly be part of the hassle.

Driving the information: Colorado Gov. Jared Polis on Wednesday praised Biden’s name for a three-month federal gasoline tax suspension, however stopped wanting endorsing the identical transfer on the state degree.

• Polis spokesperson Conor Cahill later instructed Axios Denver that the governor is “open to further methods to avoid wasting individuals cash together with suspending gasoline charges and taxes as long as the state legislature didn’t take the cash from wanted street repairs.” 
• To implement a gasoline tax vacation, Polis or lawmakers would want to name a particular legislative session and go a brand new legislation.

By the numbers: The state’s gasoline tax is 22 cents per gallon — on par with the 18-cent federal tax on gasoline and 24-cent tax on diesel. The state expects to gather $662.9 million in gasoline taxes for the fiscal yr that begins July 1, in response to a brand new legislative forecast.

• A 3-month gasoline tax vacation would cut back state revenues by an estimated $165.7 million.
• The state tax income primarily is distributed to the state and native governments for transportation initiatives, however some cash flows to the Freeway Patrol and state Division of Public Security.

Of observe: The present common value per gallon of gasoline in Colorado is $4.91, in response to AAA.

Zoom in: State Sen. Chris Hansen, a legislative price range author, instructed Axios Denver that suspending Colorado’s gasoline tax does not make sense for a number of causes

• Due to the state’s surplus income, any discount in gasoline tax collections would imply smaller refunds underneath the Taxpayer’s Invoice of Rights.
• As well as, Hansen worries in regards to the affect on native governments that depend on the cash and whether or not it might even result in decrease costs on the pump.

“It might be form of a pointless shell sport,” he instructed Axios Denver. Additional, native governments “would take successful and lift holy hell.”

Between the traces: The governor — who first known as for a federal gasoline tax suspension in March — labored with Democratic lawmakers to delay a brand new 2-cent state gasoline charge till 2023.

• Polis is open to extending the charge break subsequent yr if costs on the pump stay elevated when lawmakers reconvene in January, his spokesperson Conor Cahill instructed us.

This story was up to date with further remark from the governor’s workplace.