The Colorado Department of Revenue has issued a decision that will lead to a reduction in trailer fees for many Colorado-based carriers.

According to the Colorado Motor Carriers Assn., instead of charging Colorado carriers 100% of the specific ownership tax (SOT) for trailers, a new formula will be implemented based on the prorated mileage of the carrier fleet within Colorado.
As an example of the effect of this change, the SOT on a new trailer costing $30,000 would be $630 today. If a fleet travels 50% of its mileage within Colorado, the fee for this trailer under the new formula would be $315 translating into a savings of $315 to an operator.
The change, effective in January, was in response to a request by CMCA that the state prorate the specific ownership tax (a form of property tax) that is now charged on trailers that are registered in Colorado. In its letter to the Department of Revenues several months ago, CMCA stated that they believed that the specific ownership tax for trailers should follow the example of tractors that are already prorated. The group also outlined in the letter to the Department of Revenue that the existing system unfairly penalized Colorado carriers. CMCA noted that with states such as Kansas, Arkansas and Kentucky charging a property tax in a prorated manner for trailers based on mileage accrued within those states, Colorado carriers were being overcharged because they were paying all of the ownership tax for trailers in Colorado plus these fees in other states for the same purpose.