No, “over-the-counter” sales made by mobile retailers are generally not subject to the Retail Delivery Fee because there is no post-order delivery by a motor vehicle.
The Retail Delivery Fee does not apply when the primary purpose of the job is a service call to a customer’s location in order to repair something, such as a water heater, or diagnose a problem, and in order to complete the job you sell a part or have to replace the item. The service call is not subject to the Retail Delivery Fee whether or not you have the part or item with you when you arrive at the customer’s location or need to make a separate trip to obtain the part or item to complete the job.
The Retail Delivery Fee does apply when, the primary purpose of the job is to replace an item that requires delivery by motor vehicle to the customer’s location, such as a water heater or HVAC unit, the transaction is subject to the Retail Delivery Fee because the customer purchased tangible personal property for delivery by a motor vehicle.
If you bill your customers on a time and materials basis, the Retail Delivery Fee typically applies. A contractor who bills their customers separately for labor and materials is considered a time and materials contractor. Generally, these contractors purchase tangible personal property at wholesale and resell the items to their customers in the completion of a job. If the job’s primary purpose is to sell and install taxable tangible personal property that requires delivery by a motor vehicle to the customer’s location in Colorado, the Retail Delivery Fee does apply.
If you bill your customers on a lump-sum contract, the Retail Delivery Fee typically does not apply. A contractor who bills their customers on a lump-sum basis is considered a lump-sum contractor. Generally, these contractors purchase tangible personal property at retail and are considered the user and consumer of the tangible personal property used to complete a job. A lump-sum contractor is not required to remit the Retail Delivery Fees because a lump-sum contractor is not making retail sales to their customers. When a lump-sum contractor purchases taxable tangible personal property that will be delivered by motor vehicle to the contractor, either at the contractor’s location or the jobsite, the retailer making the sale to the contractor must charge the Retail Delivery Fees to the contractor.
Yes, because 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.
No. A retailer may not refund the Retail Delivery Fees imposed on a retail delivery when the purchased tangible personal property is returned to the retailer for a full refund of the purchase price and any applicable Sales Tax. A subsequent delivery to return the tangible personal property to the retailer is not subject to the Retail Delivery Fees because no retail sale has taken place.
However, a retailer may claim a credit for previously paid Retail Delivery Fees for any retail sale that was canceled before the item was shipped if the retailer refunded to the purchaser the full purchase price, the Retail Delivery Fees, and any applicable Sales Tax.