Beginning July 1st, 2022 Colorado is now imposing a new flat retail delivery fee of $0.27 on all products delivered to any address in Colorado
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 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 $0.27 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.”