Colorado Retail Delivery Fee for Stores using Avalara
To help our merchants stay compliant with the new Colorado Retail Delivery Fee requirement, Recharge began adding a USD0.27 fee on charges with a Colorado destination address for applicable items starting July 1, 2022. This works automatically, so merchants/customers are not required to take any further action.
Upon implementation, we discovered a bug on July 15, 2022 with respect to how Avalara was handling this fee. As a result, we turned off the collection of this fee on Avalara stores to quickly implement a fix.
Starting today, August 29, 2022, all stores using Avalara will collect a 27 cent Retail Delivery Fee on taxable sales delivered to customers located in Colorado. Per the legislation we will include a separate line item for this fee on checkout.
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.