Colorado Imposes New Retail Delivery Fee

Colorado will impose a retail delivery fee beginning on July 1, 2022. The fee is $0.27 per order, not per delivery made, and only applies if there is any taxable item in the order. Wholesale sales or other exempt sales when the order is fully exempt are not subject to the fee. The fee is passed on to the customer as a line item on the invoice or receipt. The retailer or marketplace facilitator is liable to collect and remit the fee. If the retailer (or third party) has to use a motor vehicle to transport the tangible personal property subject to sales tax at any point after the items are sold, the retail delivery fee appliesThose who are already registered will automatically be registered for this registration type; however, it is a separate return that must be filed. The returns will be filed statewide and on the same schedule as sales tax returns. Find the new return here. (Colorado Department of Revenue, Retail Delivery Fee, effective July 1, 2022) 

UPDATE: Colorado Enacts Small Business Exemption for Retail Delivery Fee.

UPDATE: The Colorado retail delivery fee can be adjusted annually based on inflation. For the period of July 2024 – June 2025, the fee is raised to $0.29. To remain up to date with the rates, find more information here.

Posted on April 17, 2024