Colorado § 42-3-112 - Failure to pay tax - penalty - rules - repeal.

§ 42-3-112. Failure to pay tax - penalty - rules - repeal.

(1) (a) If a vehicle subject to taxation under this article 3 is not registered when required by law, the vehicle owner shall pay:

(I) A late fee of twenty-five dollars for each month or portion of a month following the expiration of the registration period, or, if applicable, the expiration of the grace period described in section 42-3-114 for which the vehicle is unregistered; except that the amount of the late fee must not exceed one hundred dollars; and

(II) In addition to the taxes and fees to register the vehicle, prorated registration taxes and fees from the date the vehicle was required by law to be registered to the date the owner applied to register the vehicle. Prorated taxes and fees are assessed for a full month for the month the owner became a resident of Colorado and for the month the owner applied for registration and a full month for each month between when the owner became a resident and when the owner applied for registration.

(b) Both the late fee and prorated registration taxes and fees imposed in this subsection (1) are due when the vehicle is registered.

(1.5) (a) Notwithstanding subsection (1) of this section, the executive director of the department shall promulgate rules that establish circumstances in addition to the circumstances described in subsection (3) of this section in which a vehicle owner is exempt from paying the late fee described in subsection (1) of this section. The rules must apply uniformly throughout the state and must include exemptions for:

(I) Acts of God and weather-related delays;

(II) Office closures and furloughs;

(III) Repealed.

(IV) Medical hardships; and

(V) Information technology failures.

(b) The executive director of the department shall also promulgate rules in accordance with article 4 of title 24, C.R.S., that allow the department or an authorized agent to reduce or waive the late fee that would otherwise be due upon the registration of a trailer that is a commercial or farm vehicle, as part of the normal operation, if the owner can establish, in accordance with criteria specified in the rules, that the trailer was idled so that it was not operated on any public highway in this state for at least a full registration period. Nothing in this paragraph (b) shall be construed to exempt the owner of an idled trailer from paying any fees imposed pursuant to this article other than the late fee before again operating the trailer on a public highway in this state or from paying any taxes imposed pursuant to this article. The owner shall provide to the department or authorized agent a sworn affidavit that states that the trailer has not been operated on the public highways during the period for which it was not registered as required and describes the nature of the business conditions that resulted in the removal of the trailer from service.

(c) The executive director of the department shall consult with the authorized agents in promulgating the rules required by subsection (1.5)(a) of this section.

(1.6) [Editor's note: Subsection (1.6) is effective only if an initiative that amends the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation is approved by the people at the next general election. See the editor's note following this section.]

(a) Notwithstanding subsection (1)(a)(I) of this section, on and after January 1, 2027, and before July 1, 2030, the late fee imposed in subsection (1)(a)(I) of this section is set at fifteen dollars fifty cents for each month or portion of a month following the expiration of the registration period or, if applicable, the expiration of the grace period described in section 42-3-114 for which the vehicle is unregistered; except that the amount of the late fee must not exceed sixty-two dollars.

(b) This subsection (1.6) is repealed, effective July 1, 2030.

(1.7) (a) Notwithstanding subsection (1) of this section, the owner of the following vehicles that are subject to taxation under this article 3 who fails to register the vehicle when required by law shall pay a late fee of ten dollars:

(I) A vehicle without motive power that weighs sixteen thousand pounds or less; or

(II) A camper trailer, trailer coach, or multipurpose trailer regardless of its weight.

(b) For purposes of this subsection (1.7), the weight of a trailer of any kind is the empty weight.

(2) The department or the authorized agent that registers the motor vehicle shall retain ten dollars of the late registration fee. Each authorized agent shall remit to the department no less frequently than once a month, but otherwise at the time and in the manner required by the executive director of the department, the remainder of the late registration fees collected by the authorized agent. The executive director shall forward all late registration fees remitted by authorized agents plus the remainder of the late registration fees collected directly by the department to the state treasurer, who shall credit the late registration fees as follows:

(a) (I) For late registration fees forwarded on or before June 30, 2027, all fees to the highway users tax fund in accordance with section 43-4-804 (1)(e).

(II) This subsection (2)(a) is repealed, effective July 1, 2028.

(b) For late registration fees forwarded on and after July 1, 2027, two dollars of each late registration fee to the Colorado DRIVES vehicle services account created in section 42-1-211 (2) in the highway users tax fund and the remainder of the fees to the highway users tax fund in accordance with section 43-4-804 (1)(e).

(3) The late fee described in subsection (1) of this section shall not be imposed on a vehicle subject to taxation under this article 3 if:

(a) The person who owns the vehicle uses the vehicle in operating a commercial business and, as part of the normal operation of the business, idles the vehicle so that it is not operated on any public highway in this state for at least one full registration period. Nothing in this paragraph (a) shall be construed to exempt the owner of an idled vehicle from paying any fees imposed pursuant to this article 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.

(b) (I) The 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 subsection (3)(b) shall be construed to exempt the owner of such a vehicle from paying any fees imposed pursuant to this 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 3.

(c) The vehicle registration expired during the period the vehicle was reported stolen.

Source: L. 2005: Entire section amended, p. 395, § 1, effective July 1; entire article amended with relocations, p. 1094, § 2, effective August 8. L. 2009: Entire section amended, (SB 09-108), ch. 5, p. 50, § 7, effective March 2; (3)(c) added, (HB 09-1230), ch. 232, p. 1068, § 5, effective August 5. L. 2010: (1.5) added, (HB 10-1212), ch. 126, p. 419, § 1, effective April 15; (1.7) added, (HB 10-1211), ch. 323, p. 1500, § 1, effective July 1; (1.7) amended, (SB 10-198), ch. 377, p. 1771, § 1, effective July 1. L. 2017: (1.5)(c) amended, (HB 17-1107), ch. 101, p. 367, § 13, effective August 9. L. 2022: (1) and IP(1.5)(a) amended and (1.5)(a)(III) repealed, (HB 22-1254), ch. 428, p. 3027, § 3, effective January 1, 2023; (1.7) amended, (HB 22-1388), ch. 475, p. 3460, § 3, effective January 1, 2023. L. 2026: (2) amended, (HB 26-1102), ch. 266, p. 1480, § 3, effective June 3; IP(3) and (3)(b) amended, (HB 26-1200), ch. 69, p. 277, § 2, effective August 12; (1.6) added, (HB 26-1430), ch. 406, p. 2538, § 11, effective (see editor's note).

Editor's note: (1) This section is similar to former § 42-3-111 as it existed prior to 2005, and portions of the former § 42-3-112 were relocated to §§ 42-3-113, 42-3-209, and 42-3-210.

(2) This section was originally numbered as § 42-3-111, and the amendments to it in House Bill 05-1140 were harmonized with § 42-3-112 as it appears in House Bill 05-1107.

(3) Section 5 of chapter 266 (HB 26-1102), Session Laws of Colorado 2026, provides that the act changing this section takes effect only if section 21 of HB 26-1289 becomes law, in which case section 3 of HB 26-1102 takes effect upon the passage of HB 26-1102 or on the effective date of HB 26-1289, whichever is later. Section 21 of HB 26-1289 became law and took effect June 3, 2026. HB 26-1102 became law June 1, 2026, and section 3 of HB 26-1102 took effect June 3, 2026.

(4) Section 24(7) of chapter 406 (HB 26-1430), Session Laws of Colorado 2026, provides that section 11 of HB 26-1430 takes effect only if an initiative that amends the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation is approved by the people at the 2026 general election, in which case the amended version of this section takes effect on the date of the official declaration of the vote thereon by the governor or January 1, 2027, whichever is later.

(5) Section 4(2) of chapter 69 (HB 26-1200), Session Laws of Colorado 2026, provides that the act changing this section applies to taxes and fees due on or after August 12, 2026.

Cross references: (1) For the short title (the "Colorado Registration Fairness Act") in HB 22-1254, see section 1 of chapter 428, Session Laws of Colorado 2022.

(2) For the short title ("Colorado Budget Protection Act") and the legislative declaration in HB 26-1430, see sections 1 and 2 of chapter 406, Session Laws of Colorado 2026.