Rising Costs: Coloradans Get Gouged With New Home Delivery Fee

Have you heard about the new Colorado Retail Delivery Fee?

Whether you call it a fee or a tax, the bottom line is the state of Colorado is getting even more of your hard-earned money.

Yes, We Are Getting A Refund From the State, But....

Of course, Coloradans are all excited about the state's upcoming refund the state is giving to taxpayers as part of the Tax Payers Bill of Rights. We are feeling warm and fuzzy inside because our state wants to give us "free" money - money that was ours to begin with. However, the state giveth and the state taketh away.

Retailers, Online Market Places, and Services Impacted

As of July 1, a "fee" of 27 cents is being added to most retail deliveries in Colorado. Anything that is subject to sales tax and is delivered using a motor vehicle will have the new fee added to the bill. The fee affects third-party delivery services such as GrubHub, DoorDash, Uber Eats, and Amazon.

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Big Thanks To the Colorado Legislature

You can thank the Colorado legislature for this new fee that went into effect July 1 when the fiscal year began. It's part of a transportation funding bill that was approved in 2021. According to KOAA, the money the state collects from us will be used for road projects, pollution projects, and electric vehicle programs.

But, It's Only 27 Cents

Twenty-seven cents in your hand doesn't seem like very much money - but it all adds up with all the other taxes and fees we pay - not to mention the out-of-control rising cost of inflation.

The frustrating thing is how government entities are able to find ways to get more of taxpayers' hard-earned money because they are unable to operate their "business" with the money that's been allotted to them. Whether it's at the state or federal level, spending keeps going up, up, up, as our bank accounts go down, down, down.

Business owners are being required to collect the new fee and then submit it to the state. Could this have a negative impact on small businesses? Of course! The new law is being enforced by the Colorado Department of Revenue.

The final piece of the Colorado Retail Delivery Fee is that it might not even stay at 27 cents, but is expected to rise with inflation. There is no end in sight - and our only options are to absorb the hit, or stop having things delivered.