Colorado Retail Delivery Fee is Going Up July 1
Updated: Aug 11
From our partner: Avalara
The Colorado Retail Delivery Fee began in July 2022 but effective July,1 2023, it will be increasing from $.27 to $.28.
The Retail Delivery Fee (RDF) is applicable to all motor vehicle deliveries made to a Colorado location that includes at least one item of tangible personal property subject to state taxes. The fee applies to all eligible deliveries, even when shipping is free.
Under the new law, retailers have the option to cover the fee on behalf of their customers, without explicitly specifying the fee amount on a receipt or invoice, or directly collecting it from the customer.
Who’s impacted (not limited to):
Restaurants who deliver
Grocery Stores who deliver
Flower delivery services
Sales that require delivery (appliances, furniture, electronics)
Online stores that ship orders
Business-to-business retail sales (excluding wholesale sales)
Transactions subject to this delivery fee:
All retail sales that:
Have at least one item delivered by motor vehicle: and
Include at least one item that is subject to Colorado state sales tax.
State Registration Requirements:
No registration fees
No additional license required
Retailers cannot opt-out of the automatic registration
Per Senate Bill 23-143, Colorado has exempted the retail delivery fee for eligible retailers and businesses with sales less than $500,000 in the preceding year. This exemption will be applied retroactively from July 1, 2022, when the retail delivery fee was initially implemented. However, any fees paid between July 1, 2022, and April 1, 2023, will not be refunded by the state.
The retail delivery fee is due at the time of your sales tax return.
Avalara is a tax compliance automation software company ready to help you with your tax compliance needs. With a global team of tax experts and reliable cloud-based solutions, Avalara can help you simplify complex and time-consuming tasks that your business faces.
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