eBay

humblehomesteadco · ‎05-31-2022

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

valueaddedresource · ‎05-31-2022

@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)

@sextons-sweet-deals

The retailer or marketplace facilitator that collects the sales or use tax on the tangible personal property sold and delivered, including delivery by a third party, is liable to collect and remit the retail delivery fee. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.

Seems pretty clear to me - eBay is the marketplace facilitator, so if this fee is to be collected for eBay orders shipped to Colorado, eBay would be the one required to collect and remit it.

The only effect I can see this having on sellers is that presumably that will increase the total amount of the order on which final value and ad fees are calculated, so it may result in a very small increase in fees for orders shipped to that state.

pburn · ‎05-31-2022

@donsdetour wrote:
I am not a retailer licensed in Colorado....

But eBay is . . .

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

I think South Dakota v. Wayfair opened the door for this kind of taxation to apply to out-of-state retailers. It will be interesting to see whether there will be any legal challenges to the law and to follow the outcome if there are.

pburn · ‎05-31-2022

@valueaddedresource

Sorry--cross-posted.

a_c_green · ‎05-31-2022

@humblehomesteadco wrote:
Applies to all retail sales delivered by a motor vehicle to a location in Colorado

My first thought was that this seems aimed squarely at Amazon: around here, their delivery trucks are more ubiquitous than the USPS and UPS combined.

My second thought was that if there are any Amish delivery services in Colorado, their business is about to go through the roof.

sextons-sweet-deals · ‎05-31-2022

interesting! thank you!

I've had my shipping set for years and just went into a listing to look.

Maybe eBay should break down the U.S. by state if this law effects eBay sellers. Right now, it looks like it does and the clock is ticking.

donsdetour · ‎05-31-2022

So this is targeted at market place facilitators from what I read of the mess for the reason of transportation Sustainability.

And of course is charged to the Colorado tax payer (just an added tax on em)....

Suspect other states to follow this mess for sure:

Nope this is eBay's problem, not mine: and of course does cost me more with the final value fees for sure.....

dhbookds · ‎05-31-2022

@a_c_green wrote:
@humblehomesteadco wrote:
Applies to all retail sales delivered by a motor vehicle to a location in Colorado
My first thought was that this seems aimed squarely at Amazon: around here, their delivery trucks are more ubiquitous than the USPS and UPS combined.

My second thought was that if there are any Amish delivery services in Colorado, their business is about to go through the roof.

lol, we have enough problems with traffic with that around here.............Always brings a smile.....wish I still had the picture of one pulled up to a gas pump filling up a gas can.........

caldreamer · ‎05-31-2022

According to State of Colorado this will collected by EBAY who is "marketplace facilitator" that collects sales tax.

The retailer or marketplace facilitator that collects the sales or use tax on the tangible personal property sold and delivered, including delivery by a third party, is liable to collect and remit the retail delivery fee. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.

pburn · ‎05-31-2022

@caldreamer wrote:
According to State of Colorado this will collected by EBAY who is "marketplace facilitator" that collects sales tax.

The retailer or marketplace facilitator that collects the sales or use tax on the tangible personal property sold and delivered, including delivery by a third party, is liable to collect and remit the retail delivery fee. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.

Lol.

the_fancy_fox · ‎05-31-2022

Interesting they say online stores. I would assume that means online stores that reside in the state.

considering what it took to get sales tax. Collected, this won’t happen to out of state vendors for a while, if ever.

The Race is over
The Rats won.

american-photography · ‎05-31-2022

Looks like there is a loophole . . .

It says it pertains to motor vehicles (i.e. combustion engines). Does that include electric vehicles and electric scooters?

Also it only applies to third-party deliveries (i.e. Amazon, UPS, USPS, Doordash, Lyft, etc.), it would exclude deliveries from companies that ship their own products like grocery stores, furniture stores, etc.

sextons-sweet-deals · ‎05-31-2022

it looks like Amazon has 3 locations with 16,000+ employees in Colorado.

Colorado is a state of the wealthy and plenty of tourism. $$$$$

What really justifies this move? According to the article, it is about the roads. Just add a tax to local gas / property taxes.

Leave the rest of the U.S. out of your cash grab politicians in Colorado!

Delivery fee tax is the most idiot thing I have seen to date!

greg_orye · ‎05-31-2022

Then you won’t mind paying it for us. Thanks!

714ricki · ‎05-31-2022

As long as it's an official law, then ebay should be implementing those fees as part of the tax & fees to the buyer. Assuming they approach it as they collect & remit the sales tax, then ebay will take care of it on the behalf of the ebay sellers.

Good luck!

valueaddedresource · ‎05-31-2022

@the_fancy_fox wrote:
Interesting they say online stores. I would assume that means online stores that reside in the state.

considering what it took to get sales tax. Collected, this won’t happen to out of state vendors for a while, if ever.

@the_fancy_fox it would mean all online stores but as I said previously, for orders placed through eBay, eBay will be responsible to collect and remit it as the marketplace facilitator, just like they currently do for regular sales tax.

The only out of state sellers who need to worry about this would presumably be if you have a direct website where you do enough sales into Colorado to meet the threshold for nexus and thus are required to collect and remit tax to Colorado for those sales - but if you're in that boat, you (should) already be collecting and remitting the regular sales tax so this will just need to be added into that.

TLDR: If you sell exclusively on eBay, you do not need to worry about this.