DENVER, CO – The House Finance Committee today passed legislation to exempt small businesses from paying the retail delivery fee (RDF), saving them and consumers money. This bill, sponsored by Representatives Cathy Kipp and Matt Soper, makes the RDF more equitable to smaller businesses, saves consumers money and allows all businesses more flexibility in how they implement the fee.
“Colorado’s small businesses are integral to our economic recovery and growth,” said Rep. Cathy Kipp, D-Fort Collins. “We’re committed to making it easier for small businesses to not only get by in our state, but to thrive. This bipartisan bill works to save small businesses and consumers money on retail delivery fees while simplifying the fee collection process and maintaining critical funding for our roads and clean transportation programs.”
SB23-143, which passed committee unanimously, would exempt small businesses that have $500,000 or less in retail sales from paying RDFs. This would apply retroactively to July 1, 2022, to when RDFs were first imposed. Established by SB21-260, the RDF is a 27-cent fee imposed on all deliveries made by motor vehicles to ensure that our transportation systems account for all types of users. However, this legislation did not create distinctions for small businesses that have minimal delivery impacts on Colorado’s transportation system.
SB23-143 modifies the RDF to exempt small businesses and offers all businesses flexibility in how they implement the fee, including allowing businesses to pay the fee on behalf of their customers.