Colorado Adopts Delivery Fee Rules While Lawmakers Eye Repeal

The Colorado Department of Revenue adopted two final rules implementing the state’s one-of-a-kind fee on retail deliveries, but conceded that the program may have a short shelf life.

One final rule implements the 27-cent surcharge 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 second rule creates a penalty structure for businesses that fail to comply with the delivery fee program. Both were adopted Tuesday, but the fee actually became effective on July 1, 2022.

The department ...