Rental 2% Vehicles Program

Qualifications C.R.S. 42-3-107(11) & (12)

All tax class B and tax class C vehicles which are rented to others for periods of less than 45 days, including renewals, and are:

Based in Colorado (Colorado license plates) for rental purposes and have a Colorado address; or

Based in a state other than Colorado (out-of-state license plates) for rental purposes and rented from a place of business in Colorado. A Colorado title/registration is not required.

Vehicle types included in this program are:

Authorization

Rental companies must complete the DR 2225 Vehicle Rental Company Request and submit it to their County Motor Vehicle Office. All three copies of the request must be sent to the Department for assignment of the rental number. After the rental number has been assigned, the rental company and the County Motor Vehicle Office will be notified of the assigned rental number.

The 2% Rental Vehicle Program provides an alternate method for the rental agencies to pay specific ownership taxes. The alternate method requires a monthly payment of the specific ownership tax at the rate of 2% of the rental fees, excluding any sales tax or insurance collected, for each vehicle during the month.

When the rental company chooses to pay the specific ownership taxes using the 2% alternate method, all vehicles in the company’s rental fleet must follow the same payment schedule.

Rental companies currently in a fleet expiration (common month of expiration) must wait until the fleet expiration month to enter the 2% Rental Vehicle Program.

Fee Calculations

Monthly Report/Payments

Each rental agency must submit a monthly report to the county where the Colorado vehicles are rented, or the county where the out-of-state vehicle is rented from. A check must be enclosed, made payable to the County Clerk, or the Denver Manager of Revenue for 2% of the total amount of the rental revenue for all vehicles for that month.

The rental agency must complete the following areas of the DR 2224 Vehicle Rental Monthly Report:

• The complete name, address, city, state and zip code of the company.

• The full name of the rental company must be submitted exactly as was originally applied for on the DR 2225 Vehicle Rental Company Request form.

• The month and year of the report.

• The County name where the business is located.

• The report must be completed and mailed with a check made payable to the County Clerk and Recorder or the Denver Manager of Revenue in the county where the vehicles are rented, no later than the 20th day of each month for the preceding month.

• The Sales Tax number. (Unique number assigned by the Sales Tax Dept.)

• The amount of State Sales Tax reported on rental vehicles.

• The total rental revenue collected for the rental vehicles.

• Total amount due to the county. (This amount must be 2% of the rental fees collected.)

• The unique rental number assigned to the rental company.

Failure of the rental agency to comply with the required reporting dates will be grounds to deny future payments in this manner.

Delinquent Monthly Payments

The 2% vehicle rental payments must be made in full each month to the counties where the vehicles are rented. When this payment schedule is not adhered to, a letter must be sent to the company. Facts to be included in this letter are:

C.R.S. 42-3-107 (11) & (12) provides rental agencies with an alternative method for payment of specific ownership tax on their fleet vehicles. Instead of paying full annual ownership tax for a vehicle at the time of registration, the specific ownership tax is paid to the County Motor Vehicle Office no later than the twentieth (20th) day of each month at a rate of 2% of the amount of the rental collected for the month. When your company made application to pay by this alternative method, you agreed to comply with the requirement of payment on a monthly basis. At the present time, you are _  months delinquent on payments. Unless you submit the total payment for all past due monies by (month, day, year), we will be forced to terminate your right to pay the specific ownership tax in this manner.

In addition, C.R.S. 42-3-107 (21), allows the County Treasurer to collect the amount of delinquent tax by distraint, seizure, and sale of the vehicles upon which the tax is payable.

Additional information should include:

• Date of the last payment received.

• How many vehicles are rented in your specific county.

• All payments must be brought up to date within 30 days of the date of the letter.

• If full payment is not received within 30 days, all future vehicle transactions, including renewals, will be denied use of the 2% payment plan.

A copy of this letter, and a complete listing of all vehicles rented by the company in your county will need to be sent to the Department.

Should the company not make the necessary payment within the required time frame, the company should be notified that they are no longer eligible to utilize the 2% payment plan. A copy of this letter must also be sent to the Department.

All registrations listed for the company should be marked with a “Hold”, so they are unable to complete any transaction on the registrations without full payment of the delinquent 2% specific ownership taxes. The company will no longer be part of the 2% Rental Program and must pay full ownership taxes for vehicle registrations.