New tax for Colorado!

[def90]

Got this email today.. Basically I work construction and buy goods at wholesale and sell to my clients at retail and collect sales tax. I will now have to charge and collect $.27 per delivery. Where does this money go? Yay Colorado!






Retail Delivery Fee (RDF)


Do you sell taxable items that will be delivered by a motor vehicle to a location in Colorado
(including deliveries made by a third-party)?


If the answer is yes, this impacts you!



You will be required to charge, collect, and remit a new fee to the Colorado Department of Revenue (CDOR).



Highlights


Begins July 1, 2022
Applies to all retail sales delivered by a motor vehicle to a location in Colorado
Includes third-party deliveries
$0.27 per retail sale for delivery
Charged to the purchaser
Collected by the retailer and remitted to CDOR
Follows sales tax filing frequencies and due dates
Filed on a separate return, form DR 1786





Those impacted


Retailers licensed to make sales in Colorado
Examples include, but are not limited to:
Restaurants that deliver
Grocery Stores that deliver
Flower delivery services
Sales that require delivery
Furniture
Appliances
Electronics
Online stores that ship orders
Business-to-business retail sales (excluding wholesale sales)





Transactions subject to the Retail Delivery Fee (RDF)


All retail sales that:
Have at least one item delivered by motor vehicle; and
Include at least one item that is subject to Colorado state sales tax
If in doubt about whether or not the fee applies, contact us (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVm6HPEyPK0fFMCcZFnpvNVV5rsKpCyN7 _lfQ0LasYHhlps9rlpDD5Db18zhH21AmcER7US8LroIvUg9Yfo qpYhLmsm8TT5Hln22M_AJKckLJ&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==) for clarification





Registration


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 an RDF account by July 1, 2022
Additionally, any open out-of-state retailers or retailer?s use account holders will be automatically registered for an RDF account
No registration fee
No additional license required
Retailers cannot opt-out of the automatic registration



Retailers who open accounts after July 1, 2022, or who don?t meet the criteria above, will be able to register:


through Revenue Online (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVn0S6cWUN0y8l7aCZDCKx5b9058-mGIDNJwm48ieQp9znXIdQWWfm2W5agxHDzB0BU4E22jGPBD1RA 5FIIFPxlDW5AgjE6ew56uggrpIQ9Yl&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==)
by filing the Retail Delivery Fee Return, form DR 1786
or by submitting form CR 0100AP





Action items: What you need to do


Charge purchaser on delivery orders - RDF must be listed separately on the receipt or invoice and labeled as "Retail Delivery Fee"
File RDF return and remit fees to CDOR
Filing frequency and due dates will be the same as your sales tax or retailer's use tax frequency and due dates
A return is required to be filed each period, even if there are no fees to report
Only one return is required per tax account (sales tax or retailer's use), regardless of the number of sites
Can be filed through multiple channels
Retail Delivery Fee Return, form DR 1786
Revenue Online (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVn0S6cWUN0y8l7aCZDCKx5b9058-mGIDNJwm48ieQp9znXIdQWWfm2W5agxHDzB0BU4E22jGPBD1RA 5FIIFPxlDW5AgjE6ew56uggrpIQ9Yl&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==)
Sales and Use Tax System (SUTS) (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVm6HPEyPK0fFUwrSrrppTLnOGmpbUJlD nsbDEUz_HLYURset0dJTaLBoyTDtI9cRU4Gc8yMvC4elyUbbxg ieZMDanHDM23fYbenIKqr8o72h&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==) - functionality expected prior to the end of the year
EFT Payment - ACH Debit payment method will not be available until later in 2022, but all other electronic payment methods listed on our website (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVm6HPEyPK0fF3vzhHrA4fMHWaGRI7h5Z BQL0MPX0YcLl45cygIA0VSEhu_bP5nk34cUROT0sPaW30iMWz9 3qtIPSfLf93xSSKA==&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==) will be available for your first filing





I don't need the RDF account: Now what?


Retailers that do not make any sales of taxable tangible personal property, for delivery by a motor vehicle, to a location in Colorado, will not be required to open an RDF account



If you do not make retail deliveries that require the filing of the RDF return
and do not file any RDF returns, the account will automatically be closed by
February 28, 2023


Note: If you do not file returns while the account is open, you may receive letters from the Department suggesting that you file a return if you are required to collect and remit the Retail Delivery Fee



If you do not wish to receive letters, you may close the Retail Delivery Fee account at any time:


through Revenue Online (https://r20.rs6.net/tn.jsp?f=001lvuVJfC2La9w0SCUItiDXZhr-JRzUeIYV-tdmOAkp_ABUye9AeSPVn0S6cWUN0y8l7aCZDCKx5b9058-mGIDNJwm48ieQp9znXIdQWWfm2W5agxHDzB0BU4E22jGPBD1RA 5FIIFPxlDW5AgjE6ew56uggrpIQ9Yl&c=p9PLdZ01t-kMVGP7w6rjFl-6xif5CJtSo5GpebI35d8RO5At7BciQg==&ch=q-VB8zfJnysrnomrzT9FN-gS0-9KsSeVTtAwy2CmjZWwfi6PUWHotA==)
by submitting form DR 1108
or by contacting the Taxpayer Helpline at 303-238-7378





Exemptions


If all of the property sold is exempt from Colorado state sales tax, the delivery will be exempt from the RDF. This includes sales that are entirely wholesale sales. Sales that include both exempt and taxable tangible personal property are subject to this fee when delivered by motor vehicle to a location in Colorado. A delivery that is made to a purchaser who is exempt from paying the state sales tax (such as a government or a charitable organization) is exempt from the RDF.




Why


?43-4-218, C.R.S which was added by Senate Bill 21-260

[kidicarus13]

Is this a good example of don't ask, don't tell? If not, ya, sounds like a SOB.

[APEXgunparts]

APEX also received this notice.
Not an easy thing to make happen on an E-Commerce web site!
Hopefully the same company that handles sales tax collection will have a solution for this.

Richard

[XJ]

TABOR has been gutted by "fees" [pileoshit]

[JohnnyDrama]

Interesting. I know a lot of guys who are already really struggling. First supply, then gasoline. Now this. As I read the list of businesses this will impact, especially restaurants and grocery stores, I began to wonder about the increase in this "service" in response to the Chinese Bat Flu. I wonder if this is now part of "the new normal."

This state is really starting to disgust me.

[BladesNBarrels]

I received this also.
I guess I live in isolation.
When was this reported by the Press, TV News, or Word of Mouth.
Even Jon Caldera seems to have dropped the ball on this new fee.
Twenty Seven Cents per transaction or delivery?
This just seems more of an obstruction than a source of revenue.
Blah, this is stupid!

https://i.imgur.com/CeosrsD.jpg

[theGinsue]

RockAuto.com already won't deliver within the city limits of Colorado Springs due to ridiculous taxation, now this. I wonder how many more retailers we'll lose (now across the entire state) because the liberals in charge just can't help themselves from adding more taxes (using the identifier of "fees" to avoid TABOR rules).

Given we'll likely never regain control of the state legislature, the citizens need to start a petition to get a new law on the books (go before the voters vice the legislature) to put strict limitations on the implementation of "fees" and also get them added to TABOR. Anyone here have any experience in writing new laws?

[earplug]

This will cost more in lost productive time then it will gain in revenue.
Somebody gets a new job checking .27 cent fees.

[DireWolf]

How many deliveries would y'all say that Amazon makes daily, statewide?

Guessing it's a shitload, and those fees will add up relatively quickly at-scale....

[brutal]

Has there been any lawsuits brought or court rulings on these TABOR run-arounds?


RockAuto.com already won't deliver within the city limits of Colorado Springs due to ridiculous taxation, now this. I wonder how many more retailers we'll lose (now across the entire state) because the liberals in charge just can't help themselves from adding more taxes (using the identifier of "fees" to avoid TABOR rules).

Given we'll likely never regain control of the state legislature, the citizens need to start a petition to get a new law on the books (go before the voters vice the legislature) to put strict limitations on the implementation of "fees" and also get them added to TABOR. Anyone here have any experience in writing new laws?

The firearms and ammo companies are on the radar too... they will eventually legislate away your ability to buy ammo or gun parts online.

[bczandm]

I love TABOR, it passed for this very reason. The problem I see with this is that it really favors the big guys. Amazon and the other large retailers can automate this and they are done. For us small guys it's going to be a royal pain in the ass and costly to figure. It's an entirely new process and procedure that we will have in place. Small companies will need to charge it appropriately on each invoice. I suspect if you charge customers that don't apply you will be fined, if you don't charge it where it should be charged you will be fined. Additionally there is a new tax form that will need to be filed quarterly. Lots of work and lots of expense for us smaller shops. Our company will collect about $30 a year and it will cost us hundreds or thousands to manage this.

[eddiememphis]

Has there been any lawsuits brought or court rulings on these TABOR run-arounds?

The firearms and ammo companies are on the radar too... they will eventually legislate away your ability to buy ammo or gun parts online.

Yes, lawsuits have been filed. 2014 against RTD fees and 2015 against bridge fees. Both went in favor of the taxing authority.


Mail order firearms, parts and ammo will go away. Small shops will close. Large retailers may choose not to have much inventory, then halt sales due to poor numbers.

It will be a combination of things. There will be fees attached like a hazmat charge for shipping and storage of dangerous items. Onerous rules regarding safe storage of items and severe penalties for violations.

Insurance companies will raise rates or refuse coverage of firearms manufacturers, distributors and retailers, including home coverage if one holds an FFL.

Lenders will not finance anything gun related. Credit card companies will cancel transactions by individuals purchasing anything firearm related.

Lawsuits against distributors and retailers, including FFL's handling transfers, anytime a gun is used in a crime.

Those are just the easy ones off the top of my head, some of which are already in action.

[Erni]

Interesting. I know a lot of guys who are already really struggling. First supply, then gasoline. Now this. As I read the list of businesses this will impact, especially restaurants and grocery stores, I began to wonder about the increase in this "service" in response to the Chinese Bat Flu. I wonder if this is now part of "the new normal."

This state is really starting to disgust me.

This feels almost like it was sponsored by Amazon?

[brutal]

Yes, lawsuits have been filed. 2014 against RTD fees and 2015 against bridge fees. Both went in favor of the taxing authority.


Mail order firearms, parts and ammo will go away. Small shops will close. Large retailers may choose not to have much inventory, then halt sales due to poor numbers.

It will be a combination of things. There will be fees attached like a hazmat charge for shipping and storage of dangerous items. Onerous rules regarding safe storage of items and severe penalties for violations.

Insurance companies will raise rates or refuse coverage of firearms manufacturers, distributors and retailers, including home coverage if one holds an FFL.

Lenders will not finance anything gun related. Credit card companies will cancel transactions by individuals purchasing anything firearm related.

Lawsuits against distributors and retailers, including FFL's handling transfers, anytime a gun is used in a crime.

Those are just the easy ones off the top of my head, some of which are already in action.

Death by a thousand cuts.

They're going to pull the same type shenanigan's to run most everyone into urban centers and kill rural living through the forced move away from fossil fuels.

[Bailey Guns]

This state is really starting to disgust me.

Seriously? Just now?

[JohnnyDrama]

Seriously? Just now?

I've been a resident of Colorado since 1979. It's been a few years coming. I've lived in relatively conservative areas that have been able to ignore a lot of what has happened in the last twenty years. This is the first time I have admitted the aggressively anti-business/progressive trajectory the state is on is turning me off. I have some obligations that will keep me around for a few more years. Utah or Texas are looking really good. Hickenlooper and Polis have really increased the pace in our race to the bottom.

[DDT951]

TABOR has been gutted by "fees" [pileoshit]

That was the intention with the court ruling...

[colorider]

Maybe they will use the money to fix our pathetic roads. HA! I’m not collecting this dumbass fee.

[Oscar77]

Yes, lawsuits have been filed. 2014 against RTD fees and 2015 against bridge fees. Both went in favor of the taxing authority.


Mail order firearms, parts and ammo will go away. Small shops will close. Large retailers may choose not to have much inventory, then halt sales due to poor numbers.

It will be a combination of things. There will be fees attached like a hazmat charge for shipping and storage of dangerous items. Onerous rules regarding safe storage of items and severe penalties for violations.

Insurance companies will raise rates or refuse coverage of firearms manufacturers, distributors and retailers, including home coverage if one holds an FFL.

Lenders will not finance anything gun related. Credit card companies will cancel transactions by individuals purchasing anything firearm related.

Lawsuits against distributors and retailers, including FFL's handling transfers, anytime a gun is used in a crime.

Those are just the easy ones off the top of my head, some of which are already in action.

I agree that this is a "Tax but we wont call it a tax TABOR run around".........But how it hurts the economy/small business is they adjusted to "Covid" and now the delivery services are ripping along.
Well now they will get taxed for it.
Ironically it'll push back to "in person" sales.
(Well for people like me, who don't use bags in Denver out of principle. Others won't care and don't understand the principle here. )
It has nothing to do with guns, I mean I don't get guns delivered by my LGS to my house.
If they want to go after guns, they are more than comfortable going after them directly, like the resurgence of the various local bans.

PS:
I'll be curious to see if more restaurants etc move away from these delivery sales......... "Grub Hub" and companies like that take a cut, the delivery people take a cut, now a tax and the resulting paperwork will cost money...........
At what point is it not worth it?
COVID is forgotten..... go back to in person sales.

[Circuits]

90536

[RblDiver]

Let's see, 5.77 million CO residents. After Prop 117, this'd be subject to requiring voter approval if the estimated revenue is $100 million over 5 years, so $20 million per year. That means if there are ~74 million deliveries per year, we'd hit that mark, so about 13 deliveries per person per year.

I think it's safe to say that an average CO resident will have more than 13 deliveries of taxable goods per year...so how the hell is this not on the ballot?

[GeorgeandSugar]

Kinda like the sales tax provision on your state taxes when you buy online. Sorry, I don?t collect this information. My time and labor is worth something.


Sent from my iPad using Tapatalk

[XJ]

Only judges can determine the difference between a tax and a fee, cuz they are really smart and totally not biased against the people.

[kidicarus13]

June 2 and already on the receiving end of the RDF. I thought I would receive a free electric Colgate toothbrush with free shipping... NOPE.90839