Colorado legislators took the first step in advancing a multi-billion-dollar transportation funding bill Wednesday — but not until they made moves to eliminate the widely hated late fees associated with vehicle registrations and to give more revenues from a proposed tax hike to statewide highway expansion.

House Bill 1242, which would ask voters to approve a 20-year sales-tax hike that would raise $695 million annually for roads and transit projects, could not get any Republican support as it…