The Colorado Department of Revenue has enacted a new fee/tax related to the retail delivery of goods into the state effective July 1, 2022. All sales of tangible property subject to sales and use tax, delivered to a location in the state by a vehicle (company-owned vehicle, common carrier, third-party, etc.) are subject to a $0.27 delivery fee. The fee must be collected by the seller of the items delivered, not the company facilitating transportation of the goods.
Each sale is considered a retail delivery regardless of the number of shipments needed to deliver. Wholesale or other tax-exempt transactions are not subject to a retail delivery fee (e.g. sales to customers who have provided a resale certificate or other tax exemption certificates). This fee can and should be passed on to retail customers. The fee must be listed as a separate item on the invoiced issued to the purchaser.
Businesses already registered for sales and use tax will automatically be registered for an additional “Retail Delivery Fee” account on July 1, 2022. However, it is important to note that the fee is reported on a return separate from Colorado sales and use tax, but due on the same date (by the 20th day of the month following the reporting period). A link to the return required to be filed can be found here.
If you have any questions related to Colorado’s new fee, fill out the form on this page to connect with a SALT specialist.
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