Please remember that you must claim the state sales tax refund (TABOR refund) when filing your state income tax return. If you claimed a 2023 refund, the TABOR refund will be combined and issued out with your refund. Unlike the 2022 Colorado cashback, no separate check will be issued. 


Service Fee

A service fee (also known as a vendor fee) is a percentage of the sales tax collected that a retailer is allowed to retain in order to cover the expenses incurred by collecting and remitting state sales tax. The purpose of the state sales tax service fee is to assist Colorado retailers in complying with the obligation to collect and remit sales tax.

If the combined Colorado state service fee calculated on all of the retailer's sales tax returns for all sites/locations for the filing period exceeds $1,000, the retailer must complete the State Service Fee Worksheet (DR 0103). The worksheet is used to determine what amount, if any, the retailers must add to the total balance due calculated on the retailer's returns. Visit the Sales & Use Tax Forms web page for additional sales tax forms you will need to file your return.

For information about local jurisdiction service fee rates, review the DR 1002 publication

Service Fee Eligibility 

NOTE - The rules for service fee eligibility and calculations have changed annually for each of the last several years. Please make sure you are using the correct form DR 0103 for the filing period of sales tax you are reporting. Carefully read the instructions that accompany the DR 0103 form for the filing period you are reporting. Failure to use the correct schedule and carefully follow the calculation instructions may result in filing errors, under- or overpayment, and possibly penalty and interest on your filing. 

Beginning January 1, 2022, a retailer with total state net taxable retail sales greater than $1,000,000 is not eligible to retain the state service fee.

For any filing period beginning January 1, 2020 or later, the Colorado state service fee a retailer is allowed to retain is limited to $1,000. The State Service Fee Worksheet (DR 0103) is used to determine the total balance a retailer owes if the total combined state service fee otherwise calculated on the retailer's sales tax returns exceeds $1,000.

Retailers should first complete their Colorado Retail Sales Returns (DR 0100) or Aviation Fuel Sales Tax Returns (DR 1510), calculating
their state service fees without limitation, and then complete the State Service Fee Worksheet (DR 0103) to determine their total balance due.