Bill Summary Highlights:

The bill modifies this administration by permitting a retailer to pay the RDF on behalf of the purchaser. If the retailer elects to pay the RDF, then the retailer is:

• Not required to add the RDF to the price of the retail delivery, separately itemize the RDF, or collect the RDF from the purchaser, who is not liable for the amount nor eligible for a refund of an erroneously paid RDF; and
• Required to remit the RDF on the date that would be required if the RDF had been received from the purchaser on the date of the retail delivery.

The department is required to waive any processing costs for a retailer’s electronic payment by automated clearing house (ACH) debit of the RDF if the charges would exceed the amount of the RDF revenue being remitted.

The bill creates an exemption from the RDF for a retail delivery by a qualified business, which is a business that has $500,000 or less of retail sales in the prior year or is new, that applies retroactively to when RDFs were first imposed. A purchaser is not eligible for a refund of any RDF that is collected and remitted to the department by a qualified business prior to the effective date of the bill.

Note: The Colorado Department OF Revenue had previously exercised it’s discretionary authority to all retailers to remit but not collect the fee. If signed, this new legislation codifies that.

Handling sales and use tax properly in Colorado can be very difficult. Varying requirements and taxability between State-collected jurisdictions and self-administered home-rule jurisdictions is a significant reason. A number of our posts address the issues in more detail, but you may read the overview blog for a broader understanding.

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