Beginning July 1, 2022, Colorado will begin assessing a .27 retail delivery fee on purchases of tangible personal property that will be delivered by motor vehicle (USPS, Fed Ex, UPS, etc.) within the state.  If a motor vehicle is involved in shipping, in any way from the time the order is accepted until final delivery, the delivery fee will be assessed.  The purchaser is responsible for paying the fee;  however, retailers and marketplace facilitators are responsible for collection and remittance.  Regardless of how many shipments are required to complete the delivery only one fee will be assessed per purchase.  Remittance of the fee follows the same filing frequency and due date as the Colorado state sales tax return,  but the fee itself is not subject to Colorado sales tax.  *Wholesale sales are excluded unless ordered in combination with purchases subject to sales and use tax.

Both in-state and out-of-state retailers with an active sales tax account, a retailer license, and any sales tax liabilities reported after January 1, 2021, will be automatically registered for a Colorado Retail Delivery Fee account.  Retailers who are not automatically registered can create an account through the CO DOR website, by filing form DR 1786, or via the CO DOR’s Sales and Use tax System (which will be available by the end of 2022).