Colorado Senate Bill 21-260 Retail Delivery Fee

[humblehomesteadco]

Colorado Senate Bill 21-260 Retail Delivery Fee begins July 1, 2022

Will eBay collect and submit this tax on behalf of sellers in Colorado?

Retail Delivery Fee (RDF)

Do you sell taxable items that will be delivered by a motor vehicle to a location in Colorado

(including deliveries made by a third-party)?

If the answer is yes, this impacts you!

You will be required to charge, collect, and remit a new fee to the Colorado Department of Revenue (CDOR).

Highlights

• Begins July 1, 2022
• Applies to all retail sales delivered by a motor vehicle to a location in Colorado
• Includes third-party deliveries
• $0.27 per retail sale for delivery
• Charged to the purchaser
• Collected by the retailer and remitted to CDOR
• Follows sales tax filing frequencies and due dates
• Filed on a separate return, form DR 1786

Those impacted

• Retailers licensed to make sales in Colorado 
• Examples include, but are not limited to:
• Restaurants that deliver
• Grocery Stores that deliver
• Flower delivery services
• Sales that require delivery 
• Furniture
• Appliances
• Electronics
• Online stores that ship orders
• Business-to-business retail sales (excluding wholesale sales)

Transactions subject to the Retail Delivery Fee (RDF)

• 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

[dhbookds]

velvet@ebay 

Looks like this will go into effect..........Velvet can you check and determine if ebay will handle this????

[the_fancy_fox]

Personally, I don’t live in Colorado. And they can’t force me to collect this fee for them.  If they want to go after ebay to do so…… whatever.

Have to love the money grab.  Give a inch (sales tax collection) and they are going for the mile. It won’t stop with just this.

[dhbookds]

My evil brain............suppose Ebay DOESN'T handle it.  I'm a tiny seller, comparatively, and know I've sold 3-5 items to Co in the last couple of months........so if 15,000.....a million.....2 million sellers each have to report......how much is it going to cost Co to process $2-$10 checks each reporting period?   And, how are they going to check compliance?  Are drones "motor vehicles".........lol.........

They seemed to have passed a number of these.....nickle/dime fees.......not only on retail......

[lonebuck-books]

As someone who grew up in Colorado and finally escaped the state, you can probably guess what my answer will be to them if they try to collect that insane fee from me.

[bashort]

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@the_fancy_fox wrote:

Personally, I don’t live in Colorado. And they can’t force me to collect this fee for them.  If they want to go after ebay to do so…… whatever.

Have to love the money grab.  Give a inch (sales tax collection) and they are going for the mile. It won’t stop with just this.

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Absolutely, this will not be the end of this 

[m60driver]

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@lonebuck-books wrote:

As someone who grew up in Colorado and finally escaped the state, you can probably guess what my answer will be to them if they try to collect that insane fee from me.

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Yes, that 27¢ is totally insane, intolerable, and clearly a justifiable cause for someone to get their panties in a bunch.

[onefootflipper]

I don't care provided ebay makes a way for the customer to be paying this or a way for me to build it into shipping rules and not just charging it directly to me extra. Doesn't seem like it would matter much except that I sell a lot of $1.99 items and this is 20 percent of what is left over from those sales after existing ebay fees.

Of course if they don't make it easy then maybe my competitors that are the worst at business will stop selling trading cards for 99 cents shipped for that 3 cents profit margin.

[sextons-sweet-deals]

depending how this plays out, I may just add Colorado to my "do not ship to" list.

[glasser]

I am curious does this include items shipped via USPS as well. It seems like it might based on wording but I'd like clarification on that.

[katzrul15]

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@sextons-sweet-deals wrote:

depending how this plays out, I may just add Colorado to my "do not ship to" list.

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How would you do that??

[humblehomesteadco]

I'm assuming if you reside in CO and ship to a CO Buyer, then you have to pay or collect the tax

• Applies to all retail sales delivered by a motor vehicle to a location in Colorado
• Includes third-party deliveries

[donsdetour]

I am not a retailer licensed in Colorado....

Though them sellers in Colorado that could end up with sales in Colorado might have a problem with this one...

I dont see how they can go after out of state folks: but time will tell...

Seems like this will be an interesting mess. 

Such of course is charged to the purchaser... yet the retailer is to collect and remit...

[sextons-sweet-deals]

you should be able to select the states that you're willing to ship to in your listings

I looked up this Colorado delivery tax on-line.  The article has most frequent questions with answers. Still a little fuzzy until eBay posts something, but questions 8, 10, & 13 stick out the most to me. 

Retail Delivery Fee | Department of Revenue - Taxation (colorado.gov)

[katzrul15]

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@sextons-sweet-deals wrote:

you should be able to select the states that you're willing to ship to in your listings

I looked up this Colorado delivery tax on-line.  The article has most frequent questions with answers. Still a little fuzzy until eBay posts something, but questions 8, 10, & 13 stick out the most to me. 

Retail Delivery Fee | Department of Revenue - Taxation (colorado.gov)

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You can only exclude HI and Alaska.  You cannot exclude Colorado.