Comments on: Even Marketplace Sellers Will Pay a Price for New Colorado Fee

By: heyitcouldbeworse

heyitcouldbeworse — Mon, 04 Jul 2022 22:32:31 +0000

I live in Colorado. Our lovely democratic governor (polis) is limited by the TABOR amendment from raising taxes, so his solution is to create ‘fees’. We have fees for an ever increasing amount of things…

By: fusgeyer

fusgeyer — Mon, 04 Jul 2022 19:59:29 +0000

It is an issue for anyone selling on a marketplace that will pay the fee for you. As stated in the article, the amount of sales tax increases with the addition of this fee AND your final value fees/commissions/etc will also increase even though you do not see any additional money coming in from the taxes and fees collected on you behalf. It is a cost increase that no one needs right now. USPS just increased their rates, this fee for sales to Colorado residents is definetly unwelcome.

Everyone using a payment processor and selling online will see a cost increase when tney sell to Colorado. Even if they are not directly colllecting the fee. As to enfocement, that is up to the state of Colorado to figure it out. Will they catch everyone who does not sign up for a sales and use tax account and for the delivery fee account – no. But to those who get caught, it will be a royal pain in the a$$

By: NYSteve

NYSteve — Mon, 04 Jul 2022 17:13:00 +0000

@51st State- i may be wrong but the way i read this is:
aka- ‘jam it down your throat and let’s see you make a big smile’

while exempting the tax from 99%(?) of marketplace sellers, INDIVIDUALLY, who make less than 100,000 in sales,
(as they claim ‘NOT to worry’, we are not taking it from you….

they will now collect this fee from the MARKETPLACE, which does make >100,000 in sales (at least as a conglomerating individual sellers amounts)

By: 51st State

51st State — Mon, 04 Jul 2022 15:04:50 +0000

In reply to mbrj201.

@mbrj201 – Purportedly only TAXABLE purchases will be subject to the 27c. I don’t think most prescriptions are taxable.

You can bet that Marketplace Facilitators are going to comply – and yes, it’s forced on them. The huge additional expense and time they will have to use is definitely not anything that any business wants. They will buckle under because they’re the biggest targets for compliance — if they don’t comply they’ll be the first ones Colorado goes after.

By: 51st State

51st State — Fri, 01 Jul 2022 21:26:26 +0000

“Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.”

Can’t wait for them to close the “loophole” for customers using In-Store Pickup.

By: lessthanthreerecords

lessthanthreerecords — Fri, 01 Jul 2022 19:03:47 +0000

Ahh, the dreaded flat tax! It’s an extra 0.0135% on a $2,000 purchase, but an extra 5.4% on a $5 purchase. The breakdown is similar in terms of the extra fees a seller will get charged – negligible for larger orders, but very significant for cheaper items.

By: mbrj201

mbrj201 — Fri, 01 Jul 2022 14:07:38 +0000

How is Colorado going to determine what parcels are subject to the fee?
How are they going to collect it? -invoice return addresses?
Will this apply to prescriptions?
How will they enforce it?
Seems the bureaucracy needed to run such a program would far exceed the fees generated.
Is this is just a way for Colorado to force ebay, etsy, ruby lane & amazon, walmart?, alibaba? to collect fees on their behalf.
Or am I missing something??

By: tsme35

tsme35 — Fri, 01 Jul 2022 13:39:15 +0000

Great, I already pay hundreds in fees on taxes, won’t be long before other states over tax online sales.

By: 51st State

51st State — Fri, 01 Jul 2022 13:06:46 +0000

“. . . Those who sell through platforms that are considered to be Marketplace Facilitators and out-of-state sellers who make less than $100,000 in annual sales in Colorado need not worry.”

I honestly do not know how to respond to that statement. Does the person who wrote it actually BELIEVE it? OF COURSE these sellers certainly are going to worry!!!!!!!!!!!! They may not have to collect and remit the fee personally, but you bet they are going to be HURT because their Marketplace Facilitator will pass along not only the 27 cents but the costs of what will be a MASSIVE expense for them to implement having to collect and remit the fee !!!! And those under-100K individuals may experience fewer customers, who simply can’t or won’t pay additional costs for shopping online.

The ONLY good thing about this horrific end run is that it does reward local shoppers who actually go to stores to make purchases instead of buying online, so it is helping Mom and Pop local in-person businesses. Not very much at all, but it is helping.

By: brotherc20

brotherc20 — Fri, 01 Jul 2022 10:00:26 +0000

Many people like to protest these days. It is time the protest is about the taxation of everything and the governments wasteful spending. The federal debt interest payments for 2022 is now over $437 billion and is going higher every second. That is just the interest payment and not paying down the debt. History will repeat itself one day.