From bag fees to car fees, two ballot measures could end Colorado's fee-frenzy

In an effort to avoid having to go to voters for tax increases, Colorado state lawmakers have increasingly turned to fees.

But they may have gone too far this year.

In addition to bills imposing fees on phones, alcohol and tires, state Democratic lawmakers introduced a bill increasing the fee on car and truck rentals to just over $5 a day. If passed, the money would be used to fund mass transit projects.

The American Car Rental Association, which represents companies like Enterprise and U-Haul, is now threatening to sue the state and is putting money behind two ballot measures that could drastically limit all fees.

Greg Scott with the association warned lawmakers the fee would be a violation of federal law, which prohibits fees on airport businesses if those fees don't benefit the airport.

He says dozens of other states have dropped similar bills after learning about the law: "Colorado is the first state that has ignored it."

He says the bill could cost Denver International Airport tens of millions of dollars in federal funding.

The implications to the rental industry, he admits, go beyond Colorado: "Other states won't take Colorado's lead and come after our consumers with additional taxes. We don't want that to happen."

In addition to legal action, the association is also supporting ballot measures that would require new or increased fees be paid only by people who directly benefit from them and require mass transit fees specifically be voter-approved and paid only by people who live in areas served by the transit.

A spokesperson for Colorado Gov. Jared Polis says most transit projects are funded by road-user fees and said, "It's reckless for out-of-state special interests who already benefit from special tax treatments to threaten the financial stability of the state to line their own pockets."

Scott says it's our pockets that will be impacted if the governor signs the bill. Half of rental car costs he says are taxes and fees, "It's not the car rental company -- it's not Avis or Enterprise or that sort of thing -- paying these taxes. It's you and me, the consumer, the renters. They're passed through to the renters, so let's be clear whose wallet this is coming out of."

He also takes issue with the governor's characterization of the industry as an out-of-state special interest saying it employs 6 thousand Coloradans and generates $140 million a year in sales tax revenue.

Attorneys for Democrats are suing to keep the two initiatives off the ballot. They're constitutional so if they do pass, lawmakers couldn't change them.