Colorado received a hefty amount of pushback last year following the rollout of their new Retail Delivery Fee (RDF) law that impacted wineries and many other types of businesses shipping direct-to-consumers into Colorado. As a result of the feedback from constituents and permit holders, Colorado enacted a bill (SB 23-143) this month that vastly simplifies the RDF requirements.
Out-of-state wineries selling DTC in Colorado are only required to register for sales tax if they sell over $100,000 in annual DTC sales. Last year, the Colorado Department of Revenue (DOR) automatically registered all businesses with sales tax permits for the new RDF. Following the enactment of the recent RDF changes, any business that falls under the “qualified business” threshold of $500,000 per year will need to close its RDF account if they no longer want to pay the fee. Check here for information on how to close your RDF account.