Summary
The Colorado Court of Appeals held that the Regional Transportation District was liable for passenger-mile taxes on passenger-miles operated outside the boundaries of a city, city and county, or incorporated town. The court rejected RTD’s argument that its exemption from vehicle registration fees also exempted it from the passenger-mile tax and affirmed the judgment against RTD.
Topics
Practice areas
Questions Presented
- Whether Colorado's passenger-mile tax applied to passenger-miles operated by a political subdivision outside the boundaries of a city, city and county, or incorporated town.
- Whether RTD's exemption from vehicle registration fees caused it also to be exempt from the passenger-mile tax.
Holdings
- The passenger-mile tax applies to RTD's passenger-miles operated outside the boundaries of a city, city and county, or incorporated town because the statutory exemption is limited to passenger service and passenger-miles operated within those boundaries.
- RTD's exemption from vehicle registration fees did not exempt it from the passenger-mile tax because the statutory scheme expressly exempted political subdivisions from registration fees and ton-mile taxes but did not exempt them as such from the passenger-mile tax.
Key quotations
“This statute specifically limits the exemption to passenger-miles operated within the boundaries of a city, city and county, or incorporated town. Therefore, there is no exemption for operations outside of those boundaries.” (25)
“However, where, as here, a taxpayer claims an exemption under the statute, the burden is on it to establish its entitlement thereto, and the exemption will be strictly construed in favor of the taxing authority.” (25)
Factual background
Regional Transportation District is a political subdivision of Colorado created under the Regional Transportation District Act to operate a mass transportation system. It also operated special charter services within and outside the district, including passenger service over public highways outside the boundaries of cities, cities and counties, and incorporated towns. The Department of Revenue determined that RTD owed passenger-mile taxes on those operations and rejected its refund claim.
Procedural history
RTD brought an action in district court under section 39-21-105, C.R.S. 1973, challenging the Department of Revenue's determination and seeking a refund of passenger-mile taxes paid under protest. The case was tried on agreed facts. The district court held RTD liable for the tax and dismissed the action. The Colorado Court of Appeals affirmed.