cannot hear

nevermind

Why was this not on local news stations? Why was this not "openly" discussed with business owners? There are MANY businesses that are now aware of this new "fee" that starts next Friday

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dor_taxrules@state.co.us

Good morning! Anna Tauzin from ChowNow here. Thank you for holding this meeting.

: If you are a service company providing labor and taxable materials to a job site and you have several trips for the same job do you have to pay for each trip? If there is taxable material and/or when you combine the multiple trips onto one invoice to send out to customers, do you only charge a one time fee of $0.27 or do you have to charge .27 per trip?

Can we not charge our customers the Colorado retail fee and instead pay it directly? We have approximately 50 or fewer taxable deliveries each month. The cost to program our systems to collect this fee will be expensive and will be much more cost effective for us to just pay the fee.

can the background noise be limited?

This is breaking out horribly. Will we be able to review the recording?

To clarify there's no way of stopping these fees, we are merely discussing how it will be implemented?

That is correct. The Department does not have the authority to stop or delay the fees.

The web site states it starts next Friday! Companies are not aware of this! I spoke to many companies that are completely unaware of this new "so called" fee

I have a concern about e-commerce sellers who's sales tax system is not supporting this? Collecting this fee is a huge burden.

You have many vendors that have accounting offices outside of Colorado but branches here that deliver materials - these companies are now aware!

How does the retail delivery fee apply to a material supplier in the construction industry? Specifically, how does the fee work on a lump sum contractual arrangement versus time and material billing?

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dor_taxrules@state.co.us

can this be added to sales tax returns? I only have one taxable sale this month. So this means I have to issue a check for $0.27?

Please repeat that web address

For leasing companies. When a lessee buys the equipment at end of term - is this subject to the $0.27 even though we are not considered a retail company?

Does this apply to selling products online?

If the company uses grubhub or doordash who picks up the RDF? Would it be the company or the deliver?

My understanding it would be whomever remits the sales taxes to begin with

Agree with Mary Anne's perception. When we first learned of this new tax and asked our corporate office, they knew nothing. State did a TERRIBLE job of sharing this info.

Can we please get on with going over the nuances of the law?

Does this fee apply to taxable rentals?

Let's use this time to understand how to implement and understand how the rule applies to different types of business activity

Elections are coming - we need to get the word out on this. This is extremely underhanded - and it starts next Friday. And the discretion is concerning - who gets the benefit of that discretion?

Are there any penalties on not showing the fee on invoices but we pay the fees to the state?

Will you explain how to register for a retail delivery fee account?

@dana it's part of sales tax reporting

Contact your elected officials

Contact your State Officials after this meeting! Send out multiple letters/emails and phone calls. This is ridiculous!

Can you please reiterate the purpose of this fee again?

The Department is auto-registering all sales tax businesses.

@brooke my understanding is that it is supposed to help pay for electric vehicle charging stations

The legislature created this nightmare, not DOR, as a former tax auditor (not CO) clearly the legislature did not hold stakeholder meetings or perform adequate impact studies

good question

They say it is not a "rax" - it is a "fee"

Where can we get the Packet he's referring to?

Link to guidelines is appreciated.

I think it is a fee because it is a flat fee per delivery, not based on the sale value

Vertex is

https://tax.colorado.gov/sites/tax/files/documents/Rule%2043-4-218%20-%20DRAFT.doc

Vertex has it

Yes, Vertex has it

I received an email from Avalara with the tax code for the fee.

@Erika Hoxeng - to our understanding we need to file zeros for everyone who does not have to collect RDF but was enrolled into it. Will they automatically close their accounts after 6 months or do we have to close them?

Looks like this fee only applies to deliveries by motor vehicle. Make your deliveries by drone/passenger pigeon, etc. Problem solved

Generally speaking, fees can be passed through the legislature and not require a public vote, tax may require a public vote, this changes based on state though

What are these fee going to be used for?

Even doing this Quarterly would be great.

@mary anne my understanding is that it is supposed to help pay for electric vehicle charging stations

usually the bill or if the budget office did a review, they outline the anticipated revenue and the intended purpose

It's also used for roads. It's in the statute.

I see we have someone from Avalara (Scott Peterson). We also use that service. It would be helpful to know if Avalara is able to help with this.

This tax is only for retail deliveries, not for wholesale deliveries, correct

@dmatheny that is our understanding

Our taxing system does not allow us to charge individual orders. Every invoice will have this "fee" regardless if the order was placed together. How are we expected to collect this correctly?

If the delivery contains no taxable items it doesn't apply. If a mixed delivery it does apply. That is our read.

Avalara instructions say need to add a $0 line item to their orders with the OF400000 tax code

if this is a fee and needs to be separately stated on the invoice, it will be hard for any tax engine to implement this

If you are not obligated to collect the fee, you will not need to file zero returns. The Department will automatically close the account for retailers that do not file returns by early 2023.

Here is the web site for Colorado: https://tax.colorado.gov/retail-delivery-fee

I think for invoice systems the best thing to do is add the fee as a product

Where do you find this "rule" booklet. not finding online nor received anything? Would like to read along.

https://tax.colorado.gov/retail-delivery-fee - Go to that web site - that is where we found it and it gives you the forms

TO SARAH WORK: If you add it as a product then if you deliver to Gov/Sch/Char, your salespersons will have to know which of your customers fall under one of those catagories and remove the RDF

Is the fee subject to sales tax or specifically exempt from additional tax? It may also be hard for small business POS systems to charge tax on multiple items and not charge tax on the fee if it is exempt. Many small businesses want to have noted in the rules or guidance whether the fee is subject to sales tax or not.

As this fee states it will be treated like a tax when it comes to non-taxable customers.

How is a marketplace facilitator defined?

Do we need to refund the shipping fee for returns due to damaged items, do we need to charge the shipping fee again for the exchange of these items?

the table of tax rates has several different tax rates, with .27 cents at the bottom, is everyone charging the .27 cents?

@allison I would hope your sales people know when to charge sales taxes and when not to. In most systems you can set up products as taxable or not taxable

If we buy material and get charged the $0.27 on the invoice we receive from the supplier, and we bill out the material on our invoice to our customer, do we have to charge another $0.27 fee to that customer?

@LOL, We have thousands of customers and NO our counter personnel never had to know as the customer is set up as non-taxable but since our software company didn't have enough time to custom code this, the counterpersons will have to guess.

@Allison - if they are picking up at the counter the fee doesn't apply.

What about tangible personal property that is not delivered by motor vehicle? Like Software that is delivered online?

@erin - I think that is an exempt transaction for RDF

No motor vehicle involved

What is the State going to use this fee for?

did they say refunded items will not have the retail fee refunded?

@erin it is exempt due to no motor vehicle being used.

I think that would apply to your lease question from earlier then.

Community Access Retail Delivery Fee $ 0.0690Clean Fleet Retail Delivery Fee $ 0.0530Clean Transit Retail Delivery Fee $ 0.0300General Retail Delivery Fee $ 0.0840Bridge and Tunnel Retail Delivery Fee $ 0.0270Air Pollution Mitigation Retail Delivery Fee $ 0.0070Total Retail Delivery Fee $ 0.27

Are locals (home-rule specifically) allowed to impose sales tax on this charge as a gross receipt, while the state does not impose sales tax on it?

please clarify - If the customer is sales tax exempt, then is it also exempt from RDF?

If every item in a retail sale is exempt from sales tax, the delivery is also exempt from the retail delivery fee. However, if one or more items in the transaction are subject to sales tax, the retail delivery fee is due. Each sale for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased.

Are there any penalties on not showing the fee on invoices but we pay the fees to the state?

The fee is not subject to sales tax.

If this starts next Friday, there seems to be an awful lot of unknowns

If we are using revenue on line, will the RDF be added to our revenue on line page? Or will we need to somehow add this account to it ourselves? Thank you

We have customers that prefer to have a separate invoice for each item ordered but we would deliver several invoices at the same time so it is only 1 delivery so they should not be charged for several fees when it is really only 1 order.

We have a UPS Store. We don't "sell" the items that customers are shipping. Customers bring their items to us and we ship them via UPS or USPS. Are we subject to RDF?

@Kari, we have that same exact question. We are under the assumption the state does not consider the RDF as part of the tax base after speaking with them. However, we have been contacting every home rule city, some say it will be part of their tax base, some say no, some said ask the state, and some didn't even know about it.

The State web site calls it a "fee" not a tax - who knows what the other home rule cities are going to do - rules are made up later

Why have the news stations not had programs on this? This is important to every Colorado business!

Why didn't they just raise the sales tax .1%

@Therese & Monty - the fee is collected by the retailer charging/collecting the sales tax so UPS would not be subject to RDF.

This feedback needs to be given to your elected representatives

Exactly Mike! Phone calls, emails, letters need to be sent to all.

Direction for existing account to add the RFD account on Revenue Online under Additional Actions - when will the option be there to "add retail delivery fee account"?

did I just hear correctly that the RDF will not apply to shipments made via USPS.

@kristina - they are considering it?

Will DOR send anything out in writing to companies that are filing taxes each month?

Did I hear that correctly? There will be no fee when the delivery when made by USPS?

@fokane - it sounded like they are considering it

what if the delivery service isn't determined at time of sale and is later selected between USPS and Fedex?

Will UPS be responsible for charging their customers (the retailers) this fee too?

Why would deliveries by USPS be exempt. Seems totally random.

@jbri totally agree

@Jbri - we agree as well - this was not well thought out by any of those involved

Also would make it even harder to implement, having to exempt orders based on delivery method.

Harder to audit too

agree, JBRI

I'm just wondering what the possible logic would be for exempting USPS deliveries specifically.

Can we pay one s year or quarterly based on the dollar amount collect similar to excise tax on alcohol

Great point, Mollie!

on someone's "whim"

I emailed the USPS question last week and was told that USPS deliveries are subject to the fee

As a UPS Store, we ship hundreds of packages daily. Is this fee applied to every package shipped? In what amount? $.27 per package shipped? Sounds like it DOESN'T apply to pre-paid shipments - I don't know how it could since we don't collect any fee for those. We're just a drop-off location for pre-paid packages.

@therese & monty - he said that whomever is responsible for collecting the sales tax they should also collect and remit the RDF, if they use UPS to ship

Restaurants are not going to be able to keep up with that on every individual food delivery order.

This will kill small businesses - shame on everyone involved in this

Agreed. This will kill the small business. Plus the implementation of Destination Sourcing will be even worse

Again, contact the government officials. This is totally unacceptable - another reason why companies are leaving Colorado

Here is the web site for Governor's Office:

https://www.colorado.gov/governor/

This is just creating more government jobs to oversee this, totally ridiculous.

Interesting. That contradicts what I was told by the City of Denver

Can someone please post a link to the taxability matrix.

Contact Governor PolisState Capitol Bldg - 200 E. Colfax Ave., Rm. 136, Denver, CO 80203Constituent Services Help Line: (303) 866-2885Governor's Office, Front Desk: (303) 866-2471

Wow. A tax on a fee. Incomprehensible. Surely someone will file an injunction lawsuit over this.

https://tax.colorado.gov/sites/tax/files/documents/DR1786_06-2022.pdf

the fee is not subject to Colorado sales tax - but it cb subject to home rule city sales taxes as a mandatory charge like shipping and handling

@Tyler Rudd - but not 100% surprising. They allow sales tax to be imposed on PIF fees in CO,

Tax on tax is actually rather common.

But in most cases, the hide those as "fees" - not taxes

there is a lawsuit already filed - but it can take years for a lawsuit to work through the administrative process - as many as 3 years

Does anyone know if Onesource is ready to support this 7/1?

Hawaii taxes itself bc their sales tax is an excise tax - so yes, there are taxes on taxes - but this is not technically considered a "tax" it is a fee

Tight now - two payments, two separate forms

good question

And yet this RDF is ONLY for shipments delivered within the State of Colorado??

@therese & monty - yes

I am getting ready to reach out to our elected officials. Does anyone know why these fee is being implemented? What is the additional revenue to be used for? How was the $.27 per delivery calculated? I'd like to bring up those points in my communication.

It's actually more likely that a tax would apply to a fee or surcharge than another tax.

That should be interesting to figure out...

There are so many "uncertainties" in this whole thing - why did they start it now?

I'd like to go in depth specifically in the area of cannabis.

Where is the full rules and regs found? my email only has 3 pages and I have heard refer to page5?

Where do we send comments?

Hi, can someone please provide the link to the matrix that the home-ruled cities will comment on if they will charge a tax on this fee?

Another request for that taxability matrix link, if anyone has it.

8 days before go live and they don't have a taxability matrix for which localities will tax this fee. Someone mentioned simplifying Colorado sales tax earlier. PLEASE DO!

Tristina - is that the final rule text?

Zachary - dor_taxrules@state.co.us

That is all I have found online

The rules are proposed. Not final

It states on the web site it starts as of July 1, 2022

This is being called a fee vs a tax, so while the separately stated and visibility on the invoice isn't being enforced currently, when it is, should the fee shown above the line or below the line?

when is ACH payment available?

https://tax.colorado.gov/retail-delivery-fee

CDOR Form DR 1786 states that the fee of $0.27 is for the time period of July 2022 through June 2023. Does this mean that the fee will expire then or does it mean the rate will change next year?

Can someone please clarify, will there be an EFT payment option available on the website and can the form be filed electronically immediately?

lawsuit info - https://lede-admin.coloradosun.com/wp-content/uploads/sites/15/2022/04/2022-04-07-Complaint.pdf

Fees don't go away, they just increase.

Thank you Judy Vorndran!

sorry I was reading. Anyone share the matrix on home rules that may or is taxing this fee

colorado.ttr.services is the taxability matrix tool

where can I find the rules?

Contact Governor PolisState Capitol Bldg - 200 E. Colfax Ave., Rm. 136, Denver, CO 80203Constituent Services Help Line: (303) 866-2885Governor's Office, Front Desk: (303) 866-2471

Why start this as of July 1, 2022 if you are unsure on many facets of this?

The law passed by the legislature set the effective date, not the DOR.

How does one propose to set up the computer system so that this "fee" is taxable sometimes and not others?

It would be nice to have something in writing from CDOR stating they are not going to penalize companies until this is all sorted out. I am not comfortable with the idea that it will be on a case-by-case basis

@allison I would set up various fees depending upon the home rules by city

as products

Need to vote these prime sponsors out of office- Stephen Fenberg, Faith Winter, Alec Garnett, Matt Gray.

so for example Denver - RDF as taxable as shipping fee

Only if a big system is set up by "city"

Everything else is taxable or non taxable no matter where it's delivered

https://www.gjsentinel.com/news/western_colorado/court-state-fees-not-taxes-subject-to-tabor-rules/article_7056bbdc-df53-11e9-9bb5-20677ce07cb4.html

Colorado supreme court case that said fees are not taxes- I think this is what the state is relying upon to get out of a Tabor violation

Service calls require parts!

Did they say delivery by USPS is not subject to this tax?

it is under consideration

Please confirm that this starts next Friday

Is the service question just asked addressed in the written docs anywhere?

Contact your representatives and the governor:

Contact Governor PolisState Capitol Bldg - 200 E. Colfax Ave., Rm. 136, Denver, CO 80203Constituent Services Help Line: (303) 866-2885Governor's Office, Front Desk: (303) 866-2471

I still don't undertstand how USPS would be treated differently than UPS or FedEx

How in the world was this pushed thru if there are so many uncertainties?

How is FedEx a person but USPS is not. That is ridiculous. USPS is the most common carrier there is. That is absurd.

SCOTUS

Corporations are people

Making USPS deliveries exempt will make administration much more complicated.

Citizens United v FEC

Did I understand that if a purchase is exempt from sales tax, such as farmers, are they also exempt from this fee?

The language shouldn't have used the word person.

Last mile deliveries by the USPS will still be taxable if initiated with UPS or FedEx for small packages

my understanding - if the sales is not subject to sales tax (ie exempt) I believe the fee will not apply - the goal is to charge the fee on a direct sale shipped via motor vehicle to the end user

In regards to a real property contract. If I have one contract, does this follow the same method as a single purchase order where we only pay the fee once? Or do we have to collect it on every single batch of material delivery? It is one contract, but progress billings.

will the RDF be reported on the Use Tax filing or will Use Tax be considered on the RDF form?

Will you please clarify service calls and goods delivered whether it is subject to the deliver fee?

Anyone have an idea of how much revenue this fee is slated to generate for the state per year?

billions

And where are those funds going?

First service calls with parts delivered were not subject, but then he just said if a part is delivered and installed it is subject to the fee? "Deliver and install AC or hot water heater unit"Please clarify

Sorry, Will the RDF for Use Tax due be reported on the Use tax filing or will Use tax be reported on the RDF filing?

It won't be billions. That would require roughly 4 billion sales transactions of TPP into Colorado.

I think they said if the purpose was a service call, the RDF doesn't apply, even if parts are included in the call. I think they said it would only apply if the primary purpose was a purchase of TPP, rather than a service call.

The fiscal note to the bill estimates $33M in fees in 2022, $113M in 2023

@brayleec - my understanding is: if you order a fridge from Lowes and they deliver and install it for you that is a RDF sale If your fridge needs a new fan and you have a repair guy install the fan at your house, that is not and RDF sale. If your fridge needs a new fan and you order it online or from the the repair guy, it is delivered to your house and you install it, that is an RDF sale.

@jeff thank you

I would concur with Sarah

ok millions - not billions

but billions over time

Where should we submit these scenerios for review?

dor_taxrules@state.co.us

Contact Governor PolisState Capitol Bldg - 200 E. Colfax Ave., Rm. 136, Denver, CO 80203Constituent Services Help Line: (303) 866-2885Governor's Office, Front Desk: (303) 866-2471

If we send an email to dor_taxrules@state.co.us will we get an email back or where will we be able to find the reply?

dor_taxrules@state.co.us

Will this recording be made available for review?

They just said the law mentions direct pay permits. What does it say about direct pay permits? What is under reconsideration when it comes to direct pay permits?

It sounds like just by virtue of arranging shipping for customers (The UPS Store) -- even though we are NOT the retailer selling the item(s) being shipped -- we are going to be REQUIRED to add this RDF to every transaction with a shipment within the state of Colorado. Does that sound correct to you??

Therese & Monty - yes

Amen

👏

Therese & Monty If the UPS Store is not selling the tangible personal property, then just shipping it for a customer would not trigger the fee.

If all you are doing is shipping, and not making retail sales, you will not be required to collect and remit the retail delivery fee.

Agree with @jeff on the UPS Store question answer

Does anyone have the link to the frequently asked question page?

https://tax.colorado.gov/retail-delivery-fee

https://tax.colorado.gov/retail-delivery-fee

https://tax.colorado.gov/retail-delivery-fee

& @erika too

Some states charge sales tax on services... so it could be crazier

Our software is working on a patch that will be done by Monday

Has anyone find the Home Rule list yet?

Jeff and Erika - can I rely on your answer about the UPS Store?

@therese they are repeating what Josh said

To be clear - the Retail Sales made by The UPS Store are for packing materials. Not for the contents.

dor_taxrules@state.co.us

Tax Policy Survey:https://docs.google.com/forms/d/e/1FAIpQLSc0Y2VhrE3cflD1spGfljzdEu-vgxCgUFrFzVy876jweVEUJw/viewform

Thank you

Contact Governor PolisState Capitol Bldg - 200 E. Colfax Ave., Rm. 136, Denver, CO 80203Constituent Services Help Line: (303) 866-2885Governor's Office, Front Desk: (303) 866-2471