Thousands of Colorado Drivers Avoid Registration Fees with Out-of-State Plates

Enforcement of vehicle registration laws remains unclear as state struggles to track the scale of the problem.

Apr. 2, 2026 at 12:22am

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A KRDO13 investigation found that thousands of drivers in Colorado are using out-of-state license plates, potentially avoiding costly vehicle registration fees and taxes. While state laws require new residents to register their vehicles within 90 days, enforcement by law enforcement and the Colorado DMV appears to be limited, with few citations issued in recent years. Officials say determining residency and enforcing the law can be challenging, leaving the full scale of the problem unclear.

Why it matters

Colorado has some of the highest vehicle registration costs in the country, with an average annual fee of around $595. The widespread use of out-of-state plates deprives the state of much-needed revenue and creates an uneven playing field for residents who properly register their vehicles. Enforcement of the law is crucial to ensure fairness and fund critical infrastructure.

The details

Colorado law requires new residents to register their vehicles within 90 days of establishing residency. Drivers who fail to do so can face penalties, including late fees and back taxes. However, the Colorado DMV does not track how often these penalties are actually collected. Most enforcement falls to law enforcement agencies and county motor vehicle offices, but data shows relatively few citations have been issued in recent years for failure to register. Troopers can only issue a citation after a driver is stopped for another violation, and determining residency can be difficult.

  • In 2022, Colorado lawmakers passed a law to close a loophole that allowed drivers to delay registering vehicles while avoiding taxes and fees.
  • In 2025, the Colorado State Patrol issued 91 citations for failure to register a vehicle within 90 days of establishing residency.

The players

Colorado Division of Motor Vehicles (DMV)

The state agency responsible for vehicle registration and enforcement of registration laws.

Colorado State Patrol (CSP)

The law enforcement agency tasked with enforcing vehicle registration requirements, though they can only issue citations during stops for other violations.

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What they’re saying

“Driving with out-of-state plates alone is not a reason for a traffic stop. Troopers can only issue a citation for failing to register a vehicle after a driver is stopped for another violation.”

— Colorado State Patrol

What’s next

The Colorado DMV and state lawmakers have been contacted to provide updated estimates on the number of vehicles operating in the state with out-of-state plates and to clarify how effective the new registration laws have been in enforcement and revenue collection.

The takeaway

The widespread use of out-of-state license plates in Colorado highlights the challenges in enforcing vehicle registration requirements and the need for more robust tracking and enforcement mechanisms to ensure fairness and generate critical revenue for the state.