Fuel Tax | Fees & Surcharges
Environmental Response Surcharge (ERS)
The Environmental Response Surcharge (ERS) is due from all distributors who report the acquisition of fuel in Colorado. The rate fluctuates based on revenue in the Petroleum Storage Tank Fund. The ERS must be included on all fuel sold in Colorado, with the exception of: aviation fuel, fuel exported out of Colorado, fuel sold to railroads for off road use, or any fuel subject to the LPG/Natural Gas Fee.
The monthly ERS fee can vary depending on the amount of money in the Petroleum Storage Tank Fund. The rate can range from $50 to $100 per truck load. The LPG and Natural Gas Inspection Fee is $10 per tank truckload. A tank truckload is defined as 8,000 gallons or 8,000 gallon equivalents. The ERS fee is currently $.0125 per gallon. The LPG and natural gas inspection fee is $.00125 per gallon.
Fees collected from ERS are deposited into the Petroleum Storage Tank Fund in order to reimburse owners for incurring expenses involved in the cleaning of underground and above ground storage tanks.
Liquefied Petroleum Gas and Natural Gas Inspection Fee
This fee is collected on sales of odorized liquefied petroleum gas and natural gas for the Liquefied Petroleum Gas (LPG) and Natural Gas (NG) Inspection Fund, created to provide funding for the inspection of installations, calibration and adjustment of meters and dispensers, and testing. The fee is collected for the following fuels: liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG). The Liquefied Petroleum Gas and Natural Gas Inspection Fee is imposed on purchases of LPG, LNG, CNG and collected by distributors of liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) in Colorado.
The fee is currently set at a per tank truckload rate of $10, which is reported at $.00125 per gallon or gallon equivalent. A tank truckload is defined as 8,000 gallons or, in the case of CNG, gallon equivalents. The fee is collected, reported and paid on the Colorado fuel tax return of the manufacturer or distributor who is responsible for reporting the gallons and remitting tax due on LPG, LNG and CNG. The inspection fee is not charged for LPG and Natural Gas shipments exported from Colorado.
The amount(s) due are calculated on a fuel distributor's fuel tax return (DR 7050) through the COFTS Electronic Monthly Filing. Payment is due by the 26th of the following month, at the same time the return is due. If the due date is a weekend or a legal holiday, then the following business day is the due date. The return and payment are submitted electronically each month.
Fees collected from the inspection fee are deposited into the LPG and Natural Gas inspection Fund for inspections of newly installed and existing facilities and for investigations of accidents related to gaseous fuels.