Colorado Vendor’s Service Fee Temporarily Eliminated

The Colorado vendor’s service fee, which is a portion of the sales tax collected that is retained by the vendor to cover expenses relating to collecting and remitting the tax, has been suspended from July 1, 2009, through June 30, 2011. If the September 2010 Legislative Council Staff’s forecast indicates sufficient revenue to fund a 6% increase in General Fund spending for fiscal year 2010-2011, the vendor’s service fee will return to 3.33% on January 1, 2011. Interest and penalties will be waived until August 1, 2009 for remittance errors made due to this change in the vendor’s fee.

Previously, the fee was reduced from 3.33% to 1.35% until January 1, 2012. Due to this new fee elimination, the 1.35% rate is only effective from March 1, 2009, through June 30, 2009. (S.B. 275, Laws 2009, effective May 18, 2009, and applicable as noted above)

Posted on August 5, 2009