Court Upholds Colorado's Rental Car Fee to Combat Congestion

The 10th U.S. Court of Appeals confirmed Colorado's $3 daily congestion impact charge on rental cars, rejecting an industry group's challenge. Introduced in 2024, the fee targets short-term rentals to alleviate road congestion, with investments in transit and rail services intended to mitigate the traffic impact.

The 10th U.S. Court of Appeals has upheld Colorado's $3 per day congestion impact charge on rental cars, marking a victory for state transportation initiatives.

This decision, delivered on Monday, dismisses a challenge raised by an industry group representing major rental companies like Avis, Hertz, and Enterprise.

The fee, approved in 2024, applies to rentals of 30 days or less, aiming to offset the effects of rental car usage on public roads. Colorado officials have argued that investing in transit and rail services will help reduce traffic congestion as more rental cars enter the state’s transport ecosystem.