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

[tools*]

Fire up those bicycles; fewer Middle Americans dying from obesity / heart disease. Work for that 27¢. Forget Peloton.

[ci1000]

When will sellers have the ability to opt out of shipping to specific states.  Not just Hawaii and Alaska.

[stephenmorgan]

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@tools* wrote:

Fire up those bicycles; fewer Middle Americans dying from obesity / heart disease. Work for that 27¢. Forget Peloton.

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If you fire up a bicycle does that make it a motorized vehicle?

[the_fancy_fox]

And you think they will stop at the .27 fee? I have ocean front property to show you….

[1786davycrockett]

This should be a real nightmare for package & delivery carriers -- how are USPS, FedEx, DHL, UPS, etc. delivery drivers supposed to determine which packages are retail-for-sale products, and which packages are not?

And notice that the law is written so that that 27 cents is per SALE.  That's going to be a real hourly headache for truck deliveries of mixed products to huge vendors like Target, WalMart, CostCo, Walgreens, etc.

And what about all those donations made to Goodwill Industries, Salvation Army, St. Vincent de Paul, and other charity organizations?  Since the vast majority of those used items are intended for resale, who is going to be responsible for coughing up the 27 cents for each donated item?

And what about just your average Joe and Josephine, dropping off a few old books for re-sale at Half-Price Books -- how will it effect them?  Same with the folks bringing in old comic books to sell at comic book stores, or old trading cards at card shops, or vintage LP record stores, or stamp collectors, or antique stores?  Who's gonna cough up that 27 cents per item on all those single-item deliveries?

All that additional paperwork will probably drive more small businesses into the ground, being unable to keep up with all the bookkeeping.

Talk about Rocky Mountain "high," Colorado!