DEPARTMENT OF REVENUE Taxation Division PASSENGER MILE TAX 1 CCR 201-9 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ Rule 42-3-304(13). Passenger Mile Tax.

Basis and Purpose. The bases for this rule are sections 39-21-112(1), 42-1-204, 42-3-304(13), and 42- 3-307, C.R.S. The purpose of this rule is to clarify when the passenger mile tax applies.

(1) General Rule. The passenger mile tax applies to any vehicle with a seating capacity of more than fourteen that is operated for the transportation of passengers over public highways of this state for compensation.

(2) Exceptions.

1. (a) For buses or trolley coaches engaged in the mass transportation of the general public, the tax does not apply to service rendered within the boundaries of a city, city and county, or incorporated town, but does apply to service rendered outside these designated areas.
2. (b) For a vehicle operated by a government entity or a charitable organization as defined by section 39-26-102(2.5), C.R.S., the tax does not apply if no direct charge for transportation is made to the user of the service. However, for a vehicle operated by a government entity or a charitable organization as defined by section 39-26-102(2.5), C.R.S., the tax does apply if a direct charge for transportation is made to the user of the service.

_________________________________________________________________________ Editor’s Notes History Entire rule eff. 08/30/2023.

Code of Colorado Regulations 1