Wellington moves to align with state: board repeals vendor fee withholding

The Wellington Town Board voted Nov. 12 to adopt Ordinance 14-2025, repealing the town code provision that allowed eligible retailers to withhold a vendor’s fee (3 1/3% of the town’s 3% sales tax) from remitted sales tax. Finance Director Nick Redavid told the board the move would align Wellington with recent state and regional changes — including House Bill 25B-1005 removing the state vendor fee and a Larimer County decision to eliminate its vendor fee — and relieve administrative inconsistency for retailers.

Redavid said because the Colorado Department of Revenue administers the town’s sales tax collection, the town lacks complete reporting on vendor fee withholding by eligible retailers; staff imputed likely impacts using 2024 sales tax patterns from local breweries, convenience stores, downtown shops and national retailers. Staff estimated the change could increase town revenue by roughly $55,000 to $110,000 for fiscal year 2026, to be split 67.67% to the general fund, 18.33% to the street fund and 15% to the park fund. He emphasized this is not a sales-tax increase for residents nor a TABOR tax policy change.

A trustee moved to approve the ordinance; the board adopted the ordinance by roll call vote. Staff noted the Department of Revenue must be notified by Nov. 15, 2025 for a Jan. 1, 2026 effective date, though its systems can be updated twice yearly if adoption is delayed.