Colorado’s Retail Delivery Fees: A New Expense in Ecommerce Sales Tax Compliance

• Retail delivery fees (RDFs) are being implemented in more states as a way to generate revenue
• Colorado was the first state to roll out an RDF in July 2022
• Colorado’s RDF is 28 cents per package for FY23/24, increasing to 29 cents for FY24/25
• Colorado has a small-seller exemption for companies with retail sales totaling $500,000 or less
• Minnesota is also implementing an RDF, with a fee of 50 cents per transaction greater than or equal to $100
• Illinois and New York are discussing implementing RDFs as well
• Exemptions for RDFs vary by state and jurisdiction
• Illinois is calling their RDF a “tax” and it would be 0.5% of the retail selling price
• New York’s RDF would be 25 cents per delivery into the state
• The number of shipments for one order does not affect the RDF in Minnesota and Colorado

Source: taxconnex.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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