Dems skip gas taxes in Denver

DNC host's tax-free gas

Excerpt:

The committee hosting the Democratic National Convention has used the city's gas pumps to fill up and apparently avoided paying state and federal fuel taxes.

The practice, which began four months ago, may have ended hours after its disclosure. An aide to Mayor John Hickenlooper released a statement Tuesday evening saying that Denver 2008 Host Committee members would pay market prices for fuel and would also be liable for all applicable taxes.

However, Public Works spokeswoman Christine Downs told City Council members just hours before that host committee members were fueling up at the city pumps. The city does not pay taxes on the fuel for its fleet, and Downs said the host committee would not either.

The disclosure brought immediate scrutiny. Colorado Attorney General John Suthers said the practice "would seem" to be illegal and referred the matter to the state Department of Revenue.

Nonprofits, such as the host committee, are subject to state and federal gasoline taxes, according to the Department of Revenue.

The issue arose during the regular weekly meeting of Hickenlooper and City Council members. Downs requested authorization for a contract so the Public Works Department could be reimbursed by the host committee for use of "fueling facilities, fuel and car washes."

Downs said the contract with the host committee started in March and that $9,700 in fuel and services had been purchased from the city so far. But the committee has yet to be billed. The city anticipates $466,125 in total revenues from the contract, Downs said.

Comment: I understand that the practice has stopped! More: "There's something there that just doesn't seem right to me because, in a sense, you're saying then that the officials who pass the laws are not willing to live by them," said Councilwoman Jeanne Faatz.