About the Retail Delivery Fee
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.
The retailer or marketplace facilitator that collects the sales or use tax on the tangible personal property sold and delivered, including delivery by a third party, is liable to collect and remit the retail delivery fee. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.
The retail delivery fee is due at the same time as your sales tax return. Returns are generally filed on a monthly basis and must be filed on or before the 20th day of the month following each reporting period. Retailers permitted to file state sales tax returns on a quarterly, annual, or other basis will file the retail delivery fee return on the same schedule.
The retail delivery fee will be reported and paid on a new return, the DR 1786 form. The retail delivery fee is collected state-wide, does not need to be separated by jurisdiction, and is calculated per sale. The retail delivery fee is made up of six different fees. The rates are listed below.
|Fee Type||Rate July 2022 to June 2023|
|Community Access Retail Delivery Fee||$ 0.0690|
|Clean Fleet Retail Delivery Fee||$ 0.0530|
|Clean Transit Retail Delivery Fee||$ 0.0300|
|General Retail Delivery Fee||$ 0.0840|
|Bridge and Tunnel Retail Delivery Fee||$ 0.0270|
|Air Pollution Mitigation Retail Delivery Fee||$ 0.0070|
|Total Retail Delivery Fee||$ 0.27|
Retailers that make retail deliveries must show the total of the fees on the receipt or invoice as one item called “retail delivery fees”.
If every item in a retail sale is exempt from sales tax, the delivery is also exempt from the retail delivery fee. However, if one or more items in the transaction are subject to sales tax, the retail delivery fee is due. Each sale for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased.
Prior to July 1, 2022
As a courtesy, retailers with an active sales tax account, a retailer license, and any sales tax liability reported after January 1, 2021, will be automatically registered for a retail delivery fee account by July 1, 2022. This applies to both in-state and out-of-state retailers. There is no license required or registration fee due.
Additional Ways to Create an Account After July 1, 2022
Existing Locations or Accounts
- Can Use Revenue Online
- Go to Revenue Online and log in.
- Go to the “More” tab.
- Then in the “Additional Actions” panel, click on the “Add Retail Delivery Fee Account” link.
- File Using the PDF DR 1786 Form
- Completing and filing the Retail Delivery Fee Return using the DR 1786 form will register a Retail Delivery Fee account for you.
- There will be an option on the Sales and Use Tax System (SUTS) to sign up for a Retail Delivery Fee account.
- Can Use Revenue Online
New Locations or Accounts
- You will be able to add this type of account when opening a new location or by submitting a CR 0100AP form. On the new location or account, you will have the ability to indicate that deliveries of taxable goods will be made. Be sure to select the correct box on the application, so that a Retail Delivery Fee account will be added.
Frequently Asked Questions
The retail delivery fee is due on all items that are subject to sales or use tax and are delivered by motor vehicle to the customer. If you sell taxable items for delivery, you need a retail delivery fee account to pay the retail delivery fee. The retail delivery fee is a separate account, so you will need to have both account types in this scenario.
No, the retail delivery fee applies only to retail sales of tangible personal property for delivery by a motor vehicle to a purchaser at a location in Colorado. However, the retail delivery fee does apply to deliveries by motor vehicle from another state to a location in Colorado.
Wholesale sales are not subject to the retail delivery fee. If delivery by motor vehicle to a location in Colorado includes both items for resale (wholesale sales) and goods subject to state sales or use tax, then the seller must collect the retail delivery fee.
The retail delivery fee is imposed upon the purchaser. However, the retailer who sold the tangible personal property for delivery by a motor vehicle is required to collect the fee from the purchaser and remit it to the Colorado Department of Revenue.
Returns are due by the 20th day of the month following the reporting period. Most retailers will generally file on a monthly basis, but retailers permitted to file state sales or use tax returns on a quarterly, annual, or other basis will file the retail delivery fee return on the same schedule.
Yes, the retailer must list the fee as a separate item called “retail delivery fees” on the receipt or invoice issued to the purchaser.
Yes, the retail delivery fee will apply whether the motor vehicle used to deliver the goods to the customer is owned or operated by the retailer or by any other person.
The retailer that collects and remits sales or use tax is required to collect and remit the retail delivery fee. If the 3rd party delivery service collects and remits sales or use tax, they would also be required to collect and remit the retail delivery fee.
If a retailer overpaid the fee on any previously filed return, and the overpayment is not barred by the statute of limitations, the retailer may claim a credit on their current return against the amount owed by entering the amount of overpayment on the “credits allowed” line. Credit cannot be claimed for an overpayment on a current period if the retailer filed an amended return for the prior period or the Department adjusted the fee for the prior filing period.
No, returned goods for items that are subject to sales tax are considered allowances that may appear as a credit on the sales tax return. Senate Bill 21-260, did not explicitly allow these allowances for the retail delivery fee; therefore, the fee can not be refunded once the sale and purchase has been exercised.
The retail delivery fee is based on each sale to the customer. If a customer orders a number of items in a “cart”, and purchases all of the items at the same time, only one retail delivery fee is due regardless of how many deliveries are actually needed to complete the sale. Alternatively, if a customer orders a number of items and completes the purchase of each item at different times, the retail delivery fee is due on each sale, even if only one delivery is needed to complete the sale.
The fee is due on retail sales that are delivered by a motor vehicle. A motor vehicle is any self-propelled vehicle that is designed primarily for travel on the public highways and is generally and commonly used to transport people and property over the public highways or a low-speed electric vehicle. The retailer must consider all modes of transportation used to make the delivery; including, from the time immediately after the acceptance of the order, until the items are delivered to the purchaser’s specified location.
The retail delivery fee is based on the sale containing at least one item that is taxable for state sales or use tax and is due regardless of the shipping costs.