Motor Vehicle Daily Rental Fee

The daily vehicle rental fee and congestion impact fee are the two fees that are components of the motor vehicle daily rental fee and are imposed on all: 

• Motor vehicle rentals of 30 days or less, and
• Car sharing rentals lasting 24 hours or longer. 

The congestion impact fee was added for January 2025 and subsequent periods with the passage of Senate Bill 24-184. For more information, go to leg.colorado.gov/bills/sb24-184.

Motor vehicle means any self-propelled vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less that is designed primarily for travel on public highways and is generally and commonly used to transport people and property over public highways and low-speed electric vehicles. Low-power or electric scooters, electrical assisted bicycles, wheelchairs, or vehicles moved solely by human power are not motor vehicles.

Car sharing rental means the rental of a motor vehicle through an online platform that connects third-party vehicle owners with drivers to enable peer-to-peer car sharing within Colorado.

This fee is reported and paid using the Motor Vehicle Daily Rental Fee Return, DR 1777. Returns can be filed by mail using the PDF form or by using Revenue Online for periods after June 2022. Returns are filed on a monthly basis and must be filed by the 20th day of the month, following each reporting period. A return must be filed even if no fee is due.

The motor vehicle daily vehicle rental fee is calculated by multiplying the number of days each vehicle was rented during the month by the motor vehicle daily rental fee rate. If a vehicle is rented twice on the same day, each customer is charged this fee. If a vehicle is rented for more than 30 consecutive days by the same person, the rental is exempt from the motor vehicle daily rental fee. If a rental overlaps more than one period, report the number of days the vehicle was rented in each period separately.

Rentals made to the federal government for official use are not subject to the motor vehicle daily rental fee.

The rate may increase in July of each year to adjust for inflation. The Department is required to publish the new rate annually by April 15 for the upcoming rate effective in July. The rates are listed below: