Ordering In Just Got More Expensive Thanks To Colorado’s New Hefty Delivery Fee
Thinking about ordering in dinner tonight?
Or maybe, opting to save an in-person grocery trip to get the items you need delivered right to your door?
Thanks to Colorado's new hefty fee on various kinds of delivery services across the state, you might be rethinking both decisions mentioned above... and then some.
According to the Denver Gazette, Colorado’s new “retail delivery fee” officially went into effect as of Friday, July 1.
As per the new law - formally known as SB21-260 to the State of Colorado, the newly instated fee must be collected and paid to the state by retailers "on all 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".
What does this mean for Colorado consumers/Coloradans, in general?
Well, just don't be surprised if you start noticing an additional 27-cent fee on receipts for almost everything that you choose to get delivered to you - from food deliveries to groceries and more.
The Denver Gazette says the new law is part of the transportation package the state legislature passed back in 2021; these new fees are reportedly expected to assist in generating hundreds of millions of dollars in coming years for road improvements, transit projects, and electric vehicle programs across Colorado.
Officials with the Colorado Department of Revenue say that they've reportedly “auto-registered” all sales tax businesses to collect the new delivery fee (which is actually four fees rolled into one).
However, several business representatives who attended a special public rule-making hearing on June 23 held by the Department said they were unaware of the new fee, complained that it was incredibly complicated to comply with, and worried about raising prices for customers already enduring the worst inflation the nation has seen in decades, the Denver Gazette reported.
“This certainly has been challenging to our tax teams,” Chris Howes, president of the Colorado Retail Council told the Denver Gazette.
“This is a really unique fee. The first in the nation. ... We’re working through creation software that will allow our members to comply.”
The news publication says the council represents 1,800 retail locations in the state, including all the major chain retailers and giant Amazon.
Governor Jared Polis, however, has countered with the argument that the transportation package received bi-partisan backing and is necessary to help Colorado’s ailing roads, bridges and transportation infrastructure.
“Coloradans are smart enough to understand that these delivery trucks and services are contributing to wear and tear on our roads, and in order to keep the roads up for the rest of us and improve transit, there is a fee that goes towards transportation,” Polis said via a spokesperson.
To find out more about SB21-260, or to read the new law in its entirety, click here.
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