Colorado is imposing several new fees on all deliveries of tangible personal property into the state. Please review https://tax.colorado.gov/retail-delivery-fee for guidelines from the state.
For businesses who do not have a physical location in Colorado, but are doing business in Colorado. See https://tax.colorado.gov/out-of-state-businesses for more information and to determine if you are required to submit.
The fees must be imposed on all “delivery sales” beginning July 1, 2022.
The fees are imposed at a combined flat rate of 27 cents on any delivery that contains at least one item of taxable tangible personal property. This will increase yearly based on inflation.
The retailer must separately state the retail delivery fees on the invoice, identify the fees as “retail delivery fees,” collect the fees from the customer, and remit the fees to the Department of Revenue.
How to Setup
With our current functionality, you can use a discount to add an item the customer's cart, restricted to a "Colorado" shipping region. For more information, see Adding a free item to customer's cart. That article will guide you through setting up the discount, but set the product price to match the retail fee instead of a free item. You can also add the appropriate tax code to the product, and name your product to represent the fee.
If you don't already have one, you need to create the shipping region for Colorado to reference in your discount. Go to Settings > Shipping > Shipping Regions. Make sure to set the priority higher than other regions that would include Colorado. (United States region) Set the region type to "Zip Code" and select "Colorado" from the "States" section. For more information on Shipping Regions, see Shipping Region Setup