New Bill Could Make Used Cars Cheaper
DENVER (CBS4) - State Sen. Larry Crowder wants to make buying a car more affordable in Colorado.
The Republican who represents Otero County introduced a bill that would get rid of the state sales tax on used vehicles.
Currently, the state collects a tax every time a new car is sold. Crowder says collecting again for a used car sale is double taxation.
He also acknowledged that eliminating the used car sale tax would cause Colorado to lose out on $75 million in revenue next year.
"I do realize that it would be taking away from the treasury, but I also realize that without it, it puts more people in a perilous situation because they cannot afford the reliable transportation to get to work," said Crowder.
He says his bill would especially help low and middle-income Coloradans in rural parts of the state, where mass transit is not available.
The bill will get its first hearing in the Finance Committee on Thursday.