Colorado Delivery Fee A Revenue Grab That Could Become More Common
Colorado Delivery Fee A Revenue Grab That Could Become More Common
As US State budgets continue to get more strained, it seems like you will start to see more fees start to be levied. Here are a few notes on the tax (with an assist to Avalara):
* The $0.27 fee is called retail delivery fee, but it's not designed to drive "sustainability" as you might think.
* Applies to "all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property"
- what's a motor vehicle these days? Bike deliveries exempt? EV?
* If you are responsible for submitting/reporting tax in Colorado due EITHER to presence or marketplace facilitator, then you must submit this new fee. (Ironically this is good news, imagine if they had new criteria for this delivery fee).
* The fee MUST be reported separately to consumers, highlighting all sorts of compliance issues in checkout and other consumer invoice presentation.
* Collection technically started July 1, 2022, although seems like they will be lenient for a while.
* They still have not determined if you ship USPS is this subject to the tax, which not sure how they would exempt them in this language.
* If you buy a subscription which ships over 12 months, then it is only levied once and not twelve times (highlighting the fact this is not really about sustainability).
* Does this push any purchases back to stores, or to curbside/BOPIS in Colorado? Maybe not on its own, but even small nudges to the consumer could be significant.
* Note, even if you deliver from a store within Colorado (or outside Colorado), the fee is the same.
Something to watch.
