Pueblo flower shop owner says new retail delivery tax will affect sales

PUEBLO, Colo. (KRDO) — Effective June 1, 2022, retailers are required to charge, collect and remit new delivery fees. According to the Colorado Department of Revenue, this cost is passed on to customers.

Retailers authorized to make sales in Colorado must collect a retail delivery fee of $0.27 on each retail sale delivered by motor vehicle. The customer is responsible for paying the tax, but the business owner is responsible for paying the Department of Revenue.

This new tax comes from Senate Bill 21-260. The document states that “the company’s business objective is to support the widespread adoption of electric motor vehicles.”

Money from this tax will go to transportation infrastructure, including e-vehicle charging stations across the state, to entice people to use electric cars.

The Colorado Department of Revenue did not respond to KRDO to comment on the new tax.

The types of businesses affected include, but are not limited to:

  • Restaurants that deliver
  • grocery stores that deliver
  • Flower delivery services
  • Sales requiring delivery
  • Online stores that ship orders
  • Business-to-business retail sales (excluding wholesale items)

Gracie Clementi, owner of PS I Love you Flowers and Gifts in Pueblo, said she already felt the store was not meeting the profit margins it was supposed to achieve due to inflation. Now she doesn’t know how customers will handle another tax.

“It’s hard to add to consumers because they’re hurting now anyway with gas prices and grocery prices, so I think we’re going to have to cut our expenses, and our profit margins are going to go down for l moment until we see how people can handle it,” Clementi said. “The consumer can’t stand a lot of price increases, it will affect us to some degree.

Still, Clementi said she would try to keep prices low to ensure customers can afford to deliver flowers if they need them.

“I guess we’ll just have to work with what we get, you know, and try to do our best to ensure that our customers are always happy and that they come in and don’t overprice things where they can’t buy anymore. “

She said the delivery charges don’t sound like a lot of money, but she knows customers will start noticing the increases in delivery charges for all businesses.

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