The City of Grand Junction eliminates vendor fee starting January 1, 2026

In August 2025, the State of Colorado enacted HB25B-1005, which eliminates the state sales tax vendor fee effective January 1, 2026. The vendor fee was originally created to offset the administrative work required to file and remit tax returns, a burden that has been reduced as filing systems have modernized. Eliminating the vendor fee in Grand Junction aligns the City with the State, neighboring municipalities, and regional partners, and helps reduce confusion for businesses operating in multiple jurisdictions.

What changed

• Previous rule: Sellers could deduct a vendor fee when remitting City of Grand Junction taxes.
• New rule: The vendor fee deduction has been eliminated, and sellers must remit the full amount of tax collected.
• Effective date: January 1, 2026.

Who this affects

• Businesses licensed to collect City of Grand Junction, CO sales tax
• Sellers collecting Grand Junction use tax
• Lodging operators remitting city lodging tax
• Retail marijuana sellers subject to city tax
• Sellers that previously relied on the vendor fee to offset filing and remittance costs

If you use TaxCloud: TaxCloud automatically updates its sales tax calculation and remittance logic across all jurisdictions, including vendor fee changes, so sellers do not need to manually adjust deductions.

Next steps for sellers

• Ensure tax remittance calculations no longer subtract a vendor fee for Grand Junction beginning January 1, 2026.
• Expect higher remittance amounts even though tax rates remain unchanged.
• After the calculation is correct, prepare for filing timelines. The first return reflecting the eliminated vendor fee will be the January 2026 return, filed in February 2026.
• Review cash flow assumptions that previously accounted for the vendor fee deduction.