In this article:
What is Colorado Retail Delivery Fee?
Effective July 1, 2022, the U.S. state of Colorado imposed a retail delivery fee on retail sales of tangible personal property delivered by motor vehicle to a location in Colorado.
As a marketplace facilitator, Wish is liable to collect and remit the retail delivery fee on the tangible personal property sold on Wish and delivered to Colorado, including delivery by a third party. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a delivery location in Colorado.
Note that each customer transaction is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased. Therefore, Wish charges only one retail delivery fee per one customer transaction, regardless of how many items are in that transaction. In other words, if a customer purchases a number of items in one transaction, only one retail delivery fee is due regardless of how many deliveries are actually needed to deliver all the items.
As a result, Wish will collect at checkout a $0.27 retail delivery fee plus applicable home-rule sales tax per transaction if the delivery location is within the state of Colorado. The applicable home-rule tax of the retail delivery fee will be charged under the Tax, along with the state tax. Please see below for an example.
Note that the retail delivery fee amount may be adjusted annually in July based on inflation.
How is a merchant impacted by the retail delivery fee?
Merchants do not need to take any actions to comply with this requirement. The retail delivery fee is imposed upon the customers. As a marketplace facilitator, Wish will collect the retail delivery fee from customers and remit it to the Colorado Department of Revenue.
To learn more about retail delivery fees, please visit the Colorado Department of Revenue website.