Motor Vehicle Taxes for Armed Forces Members

Detected March 13th, 2026

Summary

Colorado Bill HB26-1200 proposes to amend motor vehicle tax and fee requirements for members of the United States armed forces serving outside the state. The bill aims to simplify the process by removing the requirement for military members to sign an affidavit to qualify for certain tax exemptions and late fee exceptions.

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What changed

Colorado Bill HB26-1200, introduced for the 2026 Regular Session, seeks to amend existing laws concerning motor vehicle taxes and fees for members of the U.S. armed forces serving outside the state. Specifically, Section 1 of the bill repeals the requirement for military members to sign an affidavit to pay a $1 specific ownership fee, and Section 3 repeals the affidavit requirement for exemption from motor vehicle registration fees. Additionally, Section 2 modifies the conditions for qualifying for a late fee exception for expired registrations when a member is serving outside the U.S., requiring proof of service outside the United States.

This proposed legislation, if enacted, would streamline the process for military personnel by removing the affidavit requirement, potentially reducing administrative burdens for both the service members and the department of revenue. While the bill is currently in draft status and under consideration, employers and legal professionals advising military members on vehicle registration and tax obligations in Colorado should monitor its progress. No specific compliance deadline is mentioned as the bill is still under consideration, and no penalties for non-compliance with the current law are detailed in this summary.

What to do next

Monitor the progress of Colorado Bill HB26-1200 through the legislative process.
Review internal processes for assisting military members with vehicle registration and tax compliance in Colorado, should the bill be enacted.

Source document (simplified)

HB26-1200

Armed Services Member Motor Vehicle Taxes & Fees

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Transportation & Motor Vehicles |
Concerning required payments upon registration of a vehicle for a member of the United States armed forces serving outside the state.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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. (Note: This summary applies to this bill as introduced.)