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Colorado Retail Delivery Fee

Surcharge Colorado shipments to include the Retail Delivery Fee with ShipperHQ settings

Overview

Starting July 1st, 2023, the State of Colorado requires certain retailers to collect a Retail Delivery Fee of $0.28 per shipment for most deliveries to Colorado addresses. This fee, although not explicitly defined as a tax, functions similarly in how it is collected and remitted. ShipperHQ is not a tax calculation provider and does not offer legal advice on the Colorado Retail Delivery Fee. However, you can configure ShipperHQ's Shipping Rules to add this fee by surcharging shipping rates. For more details on the Colorado Retail Delivery Fee, consult tax or accounting professionals and visit the Colorado Department of Revenue's Retail Delivery Fee page.

Note: ShipperHQ cannot display this fee separately from shipping charges at checkout, nor can it report or remit fees to the Colorado Department of Revenue. Merchants must ensure compliance with Colorado’s requirements for the Retail Delivery Fee.

Table of Contents

Adding Retail Delivery Fee as a Surcharge

Follow these steps to add a $0.28 surcharge to all shipments to Colorado:

  1. In your ShipperHQ dashboard, click "Shipping Rules" in the left-hand navbar.
  2. Click the "+ New" button to create a new Shipping Rule.
  3. Select "Surcharge Rates" as the action to perform.
  4. Set "Apply Surcharge as a" to "Flat Rate" and enter "0.28". Then:

    • If using the Multi-Origin Shipping Advanced Feature, set "Apply This Rate To" to "The Cart".
    • If using the Multi-Origin Shipping Advanced Feature, set "Apply This Rate To" to "Each Shipment in the Cart".

  5. Click "Continue".

  6. Select the shipping methods you use for Colorado (or "Select All") and click "Continue".
  7. Choose "Shipping Zones" as the condition for the rule and click "Continue".
  8. Set "Surcharge Rates when..." to "Shipping Zones Include".
  9. Click "I want to create a new Shipping Zone".
  10. Enter the name of your new Shipping Zone (e.g., "Colorado").
  11. Under "Countries," choose "United States".
  12. Under "For States/Regions," choose "Including".
  13. Under "State/Regions," choose "Colorado".
  14. Click "Continue" and then "Continue" again.
  15. Click "Finish".
  16. Click the Edit (pencil) icon on the newly created Shipping Rule.
  17. Enter a name (e.g., "Colorado Retail Delivery Fee") in the "Shipping Rule Name" field.
  18. Click "Save" at the bottom of the page.

Once configured, orders shipping to Colorado will include a $0.28 surcharge in the shipping rate.

Note: If using Shipping Rules to override rates, you may need to adjust Rule Processing Order or use the "Run Surcharge Rules before Set Rules" option to ensure fees are included for flat or free rate orders.

Additional Information

Handling Tax Exempt Products

Shipments containing only non-taxed products might not require the Retail Delivery Fee. Refer to the Colorado Department of Revenue's Retail Delivery Fee guidance to determine if this applies to your products. Use a Shipping Group to identify these products and modify the Shipping Rule to exclude orders containing only these items.

Identifying the Retail Delivery Fee to Customers

Using a Shipping Rule to add the Retail Delivery Fee will only change the total charged to customers. To display that their order includes this fee, customize your checkout theme (refer to instructions from your eCommerce platform) or use ShipperHQ's Rate Shopping and Custom Method Naming to alter the name shown at checkout.