Colorado’s retail delivery fee increases to $0.28 on July 1, leaving little time for businesses to test systems for these updates.
Effective July 1, 2023, the Colorado Department of Revenue (CDOR) retail delivery fee (RDF) is increasing to $0.28, up from $0.27. This leaves little time for businesses to test systems for these updates.
Also starting July 1, Colorado businesses with less than $500,000 in sales no longer are required to charge and remit the RDF. Fees paid between July 1, 2022, and April 1, 2023, before the safe harbor became effective, are not refundable.
Under the law, vendors may remit the fee on behalf of customers without a separate line item on the invoice or collecting the fee from customers. Vendors that pay the fee outright must directly remit the RDF to the CDOR.
Operating system updates
Vendors who work with a sales tax automation provider should contact their provider directly to ensure changes are in place for the effective date. Vendors who are new to RDF remittance in Colorado (and soon, Minnesota, see Are Retail Delivery Fees Snowballing?), contact your TaxOps advisor for guidance in this area.
Background on the RDF
- Colorado Retail Delivery Fee
- Colorado Revisits Retail Delivery Fee
- Minnesota Passes New Delivery Fee
- TaxOps’ Response to the New Colorado Delivery Fee
- Colorado’s Delivery Fee Drops July 1, 2022
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