Tenth Circuit Upholds Colorado’s $3 Daily Rental‑Car Congestion Fee

Overview

• A federal appeals court rejected a legal challenge to Colorado’s congestion-impact charge, leaving the up-to-$3 per day fee in place for short-term rentals.
• The court concluded the fee is imposed on customers who rent vehicles for 30 days or less rather than on airport rental firms, shaping who will pay at the counter.
• The industry challenge was brought by a trade group representing major firms such as Avis, Hertz and Enterprise and was dismissed by the Tenth Circuit.
• Colorado says proceeds will fund transit and rail projects intended to reduce traffic congestion, and the fee is adjusted annually for inflation and covers car-sharing and larger rental vehicles.
• The ruling relied in part on federal limits on taxes tied to airports but found those limits did not bar Colorado’s approach, preserving a model other cities might look to when charging rental-car users for congestion impacts.