Colorado Retail Delivery Fee
- Jul 11, 2022
Effective July 1, 2022, Colorado will impose a new retail delivery fee, in the amount of 27 cents, on all deliveries to a Colorado location that have at least one item of tangible personal property subject to state sales or use tax.
The retail delivery fee will be reported and paid on the new Colorado Delivery Fee return, the DR 1786 form. The retail delivery fee is collected at the state level and calculated on a per sale basis. The fee will not be separated at the local jurisdiction level.
In-state and out-of-state retailers with an active sales tax account will be automatically registered for the new fee. However, if the state did not register the taxpayer or a new registration is completed after the July 1, 2022 effective date, the fee can also be added by paper registration or through the taxpayer’s online account.
The retailer or marketplace facilitator that collects the sales or use tax on the transaction is liable to collect and remit the retail delivery fee.
Retailers that make retail deliveries must show the total of the fees on the receipt or invoice as one item called “retail delivery fees.” Wholesalers will not be subject to this fee.
If every item in a retail sale is exempt from sales tax, the delivery is also exempt from the retail delivery fee. However, if one or more items in the transaction are subject to sales tax, the retail delivery fee is due. Each sale for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased.
Sales that are returned for full credit including sales tax are not refundable for the retailer delivery fee. The fee does not apply to consumer’s use tax.
Examples of delivery fee calculations:
1. A retailer sells ten orders of tangible property to be delivered to Denver, CO:
Ten deliveries x .27 = $2.70 delivery fee
2. A customer purchases a $3,000 dining room set to be delivered to Denver, CO:
One delivery x .27 = $.27 delivery fee should be charged on their receipt/invoice
3. A retailer sells two orders to a customer; a dining room table on one order and six chairs on a second order to be delivered to Denver, CO:
Two delivery transactions x .27 = $0.54 delivery fee
4. A customer returns the purchase of a $3,000 table delivered to Denver, CO:
No refund of the delivery fee is given
5. A retailer places an order with a wholesaler for a table to be delivered to Denver, CO:
- No deliver fee is due on this transaction. The delivery fee would be collected by the retailer and paid by the final customer.
Additional information can be found on the Colorado Department of Revenue website.
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Andria Siciliano is a Director in the State and Local Tax Group with expertise in state and local sales and use taxation, plus payroll, property and income tax compliance and consulting.
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