Adaptability is key in today’s retail marketplace
Now more than ever, the ability to adapt to rapid change with flexible ERP systems is crucial for independent retailers. Businesses shipping products to Colorado that will be delivered by motor vehicle must now add an additional step to their daily operations. As of July 1, they’re responsible for collecting and remitting a separate retail delivery fee.
Part of a recently enacted bill focused on improving sustainability of the Colorado transportation system, the new fee applies to both in-state and out-of-state retailers who ship tangible personal property (subject to state sales or use tax) to a Colorado location.
Quick Guide to the Retail Delivery Fee
- Who pays? Any retailer selling tangible personal property, taxable in Colorado, is responsible for collecting and remitting the new fee. (If the products sold aren’t eligible for sales tax, they don’t require the fee.)
- What about wholesalers? Wholesale sellers don’t pay the fee.
- Third-party companies (also known as marketplace facilitators) will be responsible for collecting and remitting the fee to the Colorado Department of Revenue on behalf of their customers.
- The definition of motor vehicles includes company vehicles, third party vehicles, and delivery services like USPS, UPS, and FedEx.
- The fee is $0.27 per delivery, no matter how many items are included in the delivery. The rate may be subject to change after June 20, 2023.
- The fee is separate from sales tax, and requires its own filing form, DR 1786. Both forms are due on or before the 20th of the month following each reporting period.
- Even if delivery is free, the retailer must collect and remit the fee.
- The fee must be listed as a separate line item on the receipt.
Because of the short notice, many retailers are scrambling to prepare. Fortunately, navigating this new fee doesn’t have to be daunting. Having future-ready technology in place can help streamline the shipping and reporting process, helping you expand your reach while protecting your business from disruption. Epicor systems are updated and ready to accommodate this new fee, so you can continue to do business better.
Learn more about how Epicor retail solutions can keep your company moving forward.
