Does TaxCloud collect the Colorado Retail Delivery Fee (CO RDF)?
TaxCloud is committed to ensuring compliance with various state and local tax regulations, including the Colorado Retail Delivery Fee (CDF). This article aims to provide clarity on TaxCloud's role in collecting and filing the CDF for transactions made in Colorado.
What is the Colorado Retail Delivery Fee (RDF)?
Colorado imposes a retail delivery fee on 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 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.
What retailers are liable for the Colorado RDF?
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 for the Retail Delivery Fee, unless they qualify for the exemption established by Colorado Revised Statutes
In general, a retailer is not liable for the fee if the retailer’s total retail sales in Colorado in the prior year were $500,000 or less. Additionally, a retailer is not liable for the fee if they are not required to collect Colorado State Sales Tax because they have no physical location in Colorado and their total annual retail sales in Colorado are $100,000 or less. Please visit the web page for Out-of-State Businesses(opens in new window) for additional information.
How can I collect the Colorado Retail Delivery Fee (CDF)?
To collect the CO RDF, you will need to utilize a Taxability Information Code (TIC). Use TIC 11098 to collect. Please note that this TIC will need to be used for a separate line item and not added to your existing products.
What are the Colorado Retail Delivery Fee rates?
According to the CO Department of Revenue the fee rates are outlined below:
Does TaxCloud file the Colorado Retail Delivery Fee return?
Yes!
What about the cost? How much to file a Colorado Retail Delivery Fee return?
The cost to file the return is $30 per return. To learn how TaxCloud can file your CO RDF return on your behalf, check out this article.