Colorado’s New Retail Delivery Fee Became Effective July 1, 2022
Colorado now imposes a fee on retail deliveries made to a Colorado location by motor vehicle. The fee is a flat $0.27 (twenty-seven cents) per transaction and must be collected by the retailer or marketplace facilitator that is responsible for collecting the sales tax. The fee applies to all sellers required to collect Colorado sales tax and may be subject to annual increases each July.
Sellers already registered for Colorado tax collection will be automatically registered for the fee and are required to file a separate return which follows the same filing frequency and due dates as the seller’s sales tax returns. The fee must be separately stated on the purchaser’s invoice as “retail delivery fee” and is collected on a per transaction basis; transactions requiring multiple shipments into Colorado are only subject to the fee once.
Transactions subject to the fee:
- Sales that are partially or fully subject to sales tax and delivered to a Colorado location
Transactions NOT subject to the fee:
- Sales not subject to sales tax, such as wholesale sales or sales to exempt purchasers
- Taxable sales not delivered by motor vehicle
Other Interesting Notes:
If a customer returns the item purchased, the retail delivery fee is not refundable to the customer.
The retail delivery fee does not apply to items where the purchaser remits consumers use tax.
The retail delivery fee is not subject to state and state-administered local sales taxes but may be subject to sales tax in self-collecting home rule jurisdictions.
More information on Colorado’s Retail Delivery Fee can be found on the state’s website, or by contacting contact Jason Walker or any other ZHF professional.