COLORADO - RETAIL DELIVERY FEE- NOW IN EFFECT

< Back to Newsletters

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.

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.

Account Registration

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.

Retailers cannot opt out of automatic registration. If you do not make retail deliveries that require the filing of the Retail Delivery Fee Return (DR 1786) do not file any returns, and the account will be automatically closed by February 28th, 2023. If you file any Retail Delivery Fee Returns (DR1786), including returns with zero activity, we will assume you may make retail deliveries in the future and will not automatically close your account. No additional action will be needed on the accounts closed. 

However, you may receive letters from the Department regarding the retail delivery fee that suggest you file a return if you are required to collect and remit the retail delivery fees. If you do not wish to receive letters regarding the retail delivery fee, you may close the account at any time: 

• through Revenue Online; 
• by submitting form DR 1108; 
• or by contacting the Taxpayer Helpline at 303-238-7378.
   

Additional Ways to Create an Account After July 1, 2022

·         Existing 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.
• SUTS
  • There will be an option on the Sales and Use Tax System (SUTS) to sign up for a Retail Delivery Fee account. This functionality is slated to be released by the end of 2022. 

·         New Accounts 

• You will be able to add this type of account by submitting a CR 0100AP form. On the new 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. 

Reporting & Payment

Retailers who are required to collect the retail delivery fee will file the Retail Delivery Fee Return (DR 1786) and pay the fee to the Colorado Department of Revenue. 

• Only one return will be required for all locations (sites) on your account. 
• A return is required for every period, even if no fee is due for the reporting period. 
• Filing and payment can be submitted through multiple channels:
  • Retail Delivery Fee Return (DR 1786)
  • Revenue Online 
  • Sales and Use Tax System (SUTS) - functionality is slated for release by the end of 2022

For additional information on payment options, see our Tax Payments web page. The EFT Payment - ACH Debit payment method will not be available until later in 2022, but all other payment methods will be available for your first filing.