The Colorado Department of Labor and Employment (CDLE) determines the rate of the Environmental Response Surcharge (ERS) based on the balance in the Colorado Petroleum Storage Tank Fund. Based on the projected net cash balance as calculated by methods approved by the Attorney General’s Office and the State Controller’s Office, CDLE is recommending the Colorado Department of Revenue to decrease the ERS from $100.00 to $75.00 per tank load ($0.0125 per gallon to $0.009375 per gallon). The new rate is effective January 1, 2023. Revenue Online will be updated by February 1, 2023 to reflect this new rate for the January 2023 and subsequent periods.
The rate change does not affect the fuel carrier or terminal operator returns. Fuel distributors do not need to take any additional steps to file their return. The ERS rate change is calculated automatically on your return in Revenue Online. This will not affect the file upload process, so there are no changes needed for the Excel or XML files that are uploaded into Revenue Online.
ERS Exemptions:
- There are no changes to the ERS exemptions, the ERS is collected by the first receiver below the terminal rack or by the owner of the fuel when it is imported into Colorado.
- To exempt fuel that is specifically prepared and sold for use in rail equipment or locomotives, it must be reported on the Gallons Sold to Railroads for Locomotive Use line.
- Government sales are not exempt from the ERS.
- The ERS does not apply to aviation gasoline, aviation jet fuel, or liquid petroleum gas.
For more information and rates visit tax.colorado.gov/fuel-fee-
Respectfully,
Fuel Tax Unit
Colorado Department of Revenue