While Offset provides a toggle for collecting a CO retail delivery fee, most of our clients do not need to enable it.
Colorado Revised Statutes (C.R.S.) §43-4-218 exempts qualified businesses from the Retail Delivery Fee. A “qualified business” is a business whose retail sales of tangible personal property, commodities, or services in Colorado in the previous year totaled $500,000 or less.
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On July 1, 2022 the state of Colorado activated a new law where any retail purchase being delivered to residents by motor vehicle will need to be charged a $0.27 fee. The state is calling it a "Retail Delivery Fee" and it applies to both in-state and out-of-state retailers.
UPDATED - As of July 1, 2023 the delivery fee increased to $0.28 for any order shipping to a Colorado address.
Since this new law does not apply to all businesses, we will not be automatically enabling the collection of this fee in all commerce accounts. If your company would like to collect this fee for orders shipping to Colorado residents, you will have to activate this feature on the Settings>States & Taxes page of your Offset account.
For those clients using ShipCompliant, as of July 1, 2022 there are some contingencies still in motion when it comes to reporting.
While we have seen details regarding ShipCompliant account requirements—creating a General Non-Taxable Item, with the SKU name of "RetailDeliveryFee" and a price of $0.27—we feel it would be best to confirm with your ShipCompliant rep about the status of their operations and reporting within their platform, as this appears to be an ongoing workaround while they finalize the functionality of handling this new fee.
For those clients who do not have a ShipCompliant account, and will be collecting this fee, reporting in Offset/Figure commerce will be updated during the month of July 2022, in time for remitting the first month of fees collected to the state of Colorado in August 2022.
Customer order confirmation email receipts will include verbiage and a link to the Colorado Department of Revenue website...
