Colorado Retail Delivery Fee
- Perry Tew
Effective July 1, 2022, Colorado imposes a retail delivery fee on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or use tax.
Please see their full announcement here: https://tax.colorado.gov/retail-delivery-fee
How much is this tax?
From June 2022 to June 2023, the fee will be $0.27 on taxable motor deliveries to destinations within Colorado.
Do I need to do anything?
No, the UltraCart engine automatically applies the delivery fee when appropriate. This fee will be included in the tax summary line item and rolled up into the total purchase amount.
How will this fee appear for my customers?
This fee will be included in Sales Tax.
Will this apply more than once if one order has multiple shipments?
No. Each order for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased.
What if no items are considered taxable?
This fee would not apply.
What if there is a mixture of taxable and nontaxable items?
The fee would be applied. The fee is only applied once even if there are multiple taxable items.
What about digital products (ex. Digital downloads)?
This fee would not apply.
Does the fee vary by jurisdiction in Colorado?
No. The retail delivery fee is collected state-wide.
Does the fee apply if I’m located in Colorado and ship out of state?
No, this fee is only for orders shipped to Colorado addresses.
Is the fee refundable if the item(s) are returned?
The Colorado Dept. of Revenue has ruled the fee is non-refundable, even if the item is returned. If the order has not yet shipped and the order is refunded, this fee is also refunded.
Is the tax still applied if shipping is free?
Yes. The fee will be added to the taxes applied to the order.
How to determine the amount to remit?
The UltraCart Period Sales Excel Report contains a sheet named “Taxes”. Within that sheet, the “Sales Tax by State” will display the total delivery fee for that period.
