Taxes

Denver moves to exempt new Colorado delivery fee from sales & use tax

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Last Updated: October 25, 2023

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Promising news to those who do business in Denver: The City Council has proposed a bill to exempt the state’s brand-new retail delivery fee from sales and use tax.

If the bill passes, it would create a sales and use tax exemption for this fee and other government fees.

Currently, the retail delivery fee (effective July 1, 2022) is applicable to all deliveries via motor vehicle in the state containing at least one item of tangible personal property that’s subject to sales or use tax. Right now, the fee is also subject to tax in many jurisdictions.

The fee is 27 cents per sale and will be collected from buyers by retailers and marketplace facilitators. Deliveries include mailing, shipping and any other method by which products are delivered by motor vehicle to customers in the state.

We’ll keep you posted on the Denver bill and any other related legislation.

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