As of July 1st, 2022, Colorado is imposing a new "retail delivery fee" of $0.27 per order on all deliveries by motor vehicle (such as a USPS® or UPS® truck) that contain at least one item of taxable goods in the package. Online marketplaces like eBay or Etsy are liable for collecting and paying these fees, as well as retailers who sell through their own websites or non-marketplace sales channel.

Here's what we know so far:

If your business is located outside of Colorado but ships LESS than $100,000 of goods to Colorado per year, you're exempt from the new sales tax licensing and collection requirements 👍

When using the $100,000 threshold to determine if your business is exempt, the Colorado Department of Revenue says that "a multichannel seller should not consider any retail sales that were facilitated by a marketplace facilitator through a marketplace."

Basically, since marketplaces are responsible for collecting sales tax, they are the responsible parties for collecting and remitting these new delivery fees to Colorado... so if your business isn't based in Colorado, you only need to worry about this new tax if you sell more than $100,000/year to Colorado through your own sales platform (like your own website).

If your business is based in Colorado, you may be liable for this tax on any in-state sales. Make sure to read all the resources that are linked at the bottom of this article, and reach out to your state's tax department if you need any help.

Colorado applies these retail delivery fees to each sale, so even if an order takes multiple packages to deliver, only one delivery fee for that sale is due.

Marketplaces are required to collect and remit delivery fees to the Colorado Department of Revenue, so if for example you sell on eBay or Etsy you won't need to pay any delivery fees yourself, since those marketplaces are responsible for collecting and paying these types of taxes—but your Colorado customers may notice the new fee as a line item in the sales on those platforms.

Below is a breakdown of the new retail delivery fees:

For more detailed info on the new retail delivery fee for Colorado-bound shipments, check out the following resources:

Any questions? Chat with our Support Crew by clicking the blue button—we're here for ya!