Colorado passed new legislation that makes changes to the state’s retail delivery fee (RDF) as highlighted in its May 9, 2023 press release. Colorado originally initiated the retail delivery fee of $0.27 on July 1, 2022. The new legislation exempts new businesses or businesses with less than $500,000 in sales in the prior year from the RDF. In addition, a seller can now pay the RDF on behalf of their customers. The prior law required that the RDF be separately stated on the seller’s invoice. The RDF, like all good taxes and fees, increases to $0.28 on July 1, 2023.
The $0.27 RDF (current rate) applies to every retail delivery made by motor vehicle to a destination in Colorado. The fee applies when at least one item is subject to sales or use tax and the delivery is mailed, shipped, or delivered by motor vehicle. Wholesale sales or sales of exempt goods are not subject to the retail delivery fee.
For more information on the retail delivery fee, visit Colorado’s website here – https://tax.colorado.gov/retail-delivery-fee.
If you have questions on Colorado’s new retail delivery fee or other SALT matters, please contact HBK’s SALT Advisory Group at hbksalt@hbkcpa.com.
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