State Sales Tax Service Fee Restored
The Colorado state sales tax Service Fee (also known as the Vendor’s Fee) has been restored and the rate is now 2.22%. The fee may be claimed on timely filed and paid sales tax returns submitted on or after July 1, 2011 beginning with sales tax returns for June 2011 and 2nd quarter 2011 due on July 20, 2011.
This applies to state sales tax, state retailers use tax, and Regional Transportation District (RTD), Scientific and Cultural District (CD), Football District (FD), Baseball District (BD) sales tax. The service fee rates for state-collected cities, counties and other special districts are not changed. Service rates for state-collected local jurisdictions are listed in the publication Colorado Sales/Use Tax Rates (DR 1002). The service/vendor's fee does not change the Colorado state sales/use tax rate which is 2.9 percent.
Single location businesses will receive new DR 0100 coupon books in early July. If the new the booklet does not arrive in time to prepare and file the return, change the state and district column vendor fee rates on the existing coupon to 2.22%. Multiple location retailers, seasonal filers, and annual filers will receive pre-printed forms that will have the 2.22% rate. XML format or Excel spreadsheet filers need to verify that their rate for state, RTD/CD/FD/BD has been changed to reflect the service fee change for the June 2011 or 2nd quarter 2011 returns due on July 20, 2011.
The service fee may be kept by the licensee ONLY if the tax return is filed and paid on time.