New: Colorado Retail Delivery Fee

Recently, the Colorado Department of Revenue introduced a Retail Delivery Fee - which took effect on July 1, 2022. Retailers, including wineries with a physical location in Colorado, or an out-of-state winery that holds a sales or use tax permit (required if your retail sales into Colorado are more than $100k in a calendar year) are required to 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.  

Below are answers to frequently asked questions: 

1. Does my business need to collect and remit the retail delivery fee? 

If your winery is located in Colorado, or you are an out-of-state winery with a sales or use tax permit in Colorado, then you will need to remit the retail delivery fee. 

To determine if you are above the $100,000 per year threshold, you can: 

• Navigate to Reports 
• Click on Sales Summary by State 
• Set your date range in the top left. We recommend checking calendar year 2021 and then year-to-date for 2022 to see if you are above the threshold 
• Click Manage Filters and set the ship state to Colorado 
• View or export the report 

2. How do I find out how many "deliveries" I have made into Colorado for reporting and payment purposes?

If the retail delivery fee applies to your business, you need to remit $0.27 per order shipped.  Based on FAQ no. 15 on the Colorado Department of Revenue Taxation Department website.  

"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." 

WineDirect supports these reporting requirements - follow these steps for the best way to get the information you need to report and pay (when applicable): 

• Navigate to Reports>Sales>Orders by Ship/Pickup Date 
• Select the appropriate date range for the reporting period you will be paying taxes in 
• Click "Manage Filters" and use the following filters 
• Under "Date Type" select "Submitted Date" 
• Under "Ship States," click "Deselect All" then find and select only "Colorado" (Note that you will need to select "Add Filter" and check the box next to "Ship States" in order to see this filter) 
• Click View and take note of the item count listed at the bottom: ie: "Showing 1 - 50 of 292" would indicate that you have 292 shipping orders destined for Colorado in the given reporting period 
• Multiplying the quantity of orders noted in Step 4 by $0.27 each to determine your tax liability 

3. Do I need to present the Retail Delivery Fee on the invoice? 

The answer is: “not yet.”  CO DOR has stated the following regarding the requirement to present the retail delivery fee on invoices or receipts, based on FAQ no. 6: 

“...the Department currently has no plans to prioritize enforcement of this provision as long as retailers are paying the full amount of the fees due in accordance with their liability under section 43-4-605(6)(c), C.R.S.  Retailers who are temporarily paying the fees are advised to avoid statements indicating that the retail delivery fee will be assumed or absorbed or that it will not be added to sale as prohibited by section 39-26-108, C.R.S.” 

We will keep you posted on these developments as they evolve.  

For further information, check out this great up-to-date resource in the FAQs at the bottom of the Colorado Department of Revenue website. It states important details on who is impacted by this change, when the change is in effect, and when the department will begin to enforce the requirement to present the fee on the consumers invoice or receipt (they are delaying enforcement for now). Thank you.