CO Retail Delivery Fee

Update: On July 1^st, 2023 Colorado's fee described below increases to $0.28.

• What is Colorado’s New Retail Delivery Fee?
  • Beginning July 1^st, 2022 Colorado imposed a new flat retail delivery fee of $0.27 on all deliveries made to addresses in Colorado. This fee increases to $0.28 On July 1^st, 2023.
    
    
• What does the fee pay for?
  • Here’s Colorado’s fee breakdown:
    
    
    
• Is this fee just a new tax?
  • It’s similar, but unlike taxes the fee is charged as a flat $0.27 (or $0.28 after July 1^st, 2023) additional charge on each transaction and is not dependent on purchase price like other taxes.
    
    
• Do I need to pay the fee on each item ordered?
  • Not necessarily – the fee is charged once per transaction, so if multiple items are ordered at the same time in a single transaction the fee will only be charged once, likewise. This also goes for items shipped separately or at different times. For example, if a monthly book club subscription sends books once a month but is paid in a single lump-sum for a year, the fee is only charged a single time on the originating transaction.
    
    
• Who does the fee affect?
  • The fee is charged “to retail sales of tangible personal property for delivery by a motor vehicle to a purchaser at a location in Colorado” and includes tangible goods shipped to Colorado addresses from other states.
  • The fee does not affect purchases between wholesalers unless delivery of wholesale-purchased goods also “includes both items for resale (wholesale sales) and goods subject to state sales or use tax.”
    
    
• Where can I learn more?
  • On Colorado’s official Tax website