DENVER, CO - The House today passed legislation to save Coloradans money by exempting small businesses from paying the retail delivery fee (RDF). The bill passed by a vote of 62-3.
“Colorado’s bipartisan and historic transportation bill is saving driver’s money on car registrations and improving our roads, and soon it will reduce the time Coloradans spend in traffic and the money we spend fixing our cars,” Rep. Cathy Kipp, D-Fort Collins. “To alleviate some of the administrative burden of collecting and remitting the retail delivery fee, which funds critical transportation projects, we’re exempting qualifying small businesses from the fee and streamlining the process.”
SB23-143, also sponsored by Representative Matt Soper, would exempt small businesses that have $500,000 or less in retail sales from paying the RDF. This would apply retroactively to July 1, 2022, to when the RDF was 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 system accounts for all types of users. However, this legislation did not create distinctions for small businesses that have minimal impacts on Colorado’s roads.
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.