For merchants using Recharge Checkout, taxes are now updated to automatically collect the 'Retail Delivery Fee' from customers for deliveries made in the State of Colorado. This new fee is considered mandatory as of July 1st 2022.
To help our merchants stay compliant with this requirement, Recharge will add a USD0.27 fee on charges with a Colorado destination address for applicable items, as long as your business collects sales tax in the state of Colorado. This works automatically, so merchants/customers are not required to take any further action.
For more details on how this fee is applied, refer to the State Department's website here.
NOTE: for merchants using Recharge with Shopify Checkout Integration, Shopify will directly apply this fee to all relevant transactions.
To stay up to date with the latest tax requirements, visit our support documentation here.