Colorado charges a Retail Delivery Fee on most retail purchases delivered to a Colorado address. Offset provides a toggle to collect this fee on behalf of your business. Most brands do not need to enable it, however. Enabling it is only appropriate if your business does not qualify for the small-business exemption described below.
Do You Need to Collect This Fee?
Colorado Revised Statutes (C.R.S.) §43-4-218 exempts qualified businesses from the Retail Delivery Fee. A qualified business is one whose retail sales of tangible personal property, commodities, or services in Colorado in the previous year totaled $500,000 or less.
IMPORTANT: Determining whether your business qualifies for this exemption is a tax compliance decision. We recommend confirming your status with your accountant, tax advisor, or ShipCompliant rep before enabling this feature. You can also review current requirements directly on the Colorado Department of Revenue's Retail Delivery Fee page.
Because this fee doesn't apply to every business, Offset does not automatically enable it on any account.
How to Enable Fee Collection
If your business does not qualify for the exemption and needs to collect this fee on orders shipping to Colorado:
Go to Settings
Click States & Taxes
Enable the Colorado Retail Delivery Fee toggle
Save your changes
Once enabled, the fee will be applied automatically to qualifying orders shipping to Colorado addresses and will appear as a separate line item on the customer's order.
NOTE: The fee rate is set annually by the state of Colorado and typically changes each July 1. Offset keeps the rate current on our end, so you do not need to manually update anything when the state adjusts it. You can always confirm the current rate on the Colorado Department of Revenue's rates page.
For Brands Using ShipCompliant
If your business uses ShipCompliant for compliance and tax reporting, confirm with your ShipCompliant rep how the Retail Delivery Fee should be configured and reported on their end. Reporting requirements for this fee are managed by ShipCompliant separately from Offset's toggle, and their setup may include creating a corresponding non-taxable line item on their platform.
Customer Order Receipts
When the fee is enabled, it will show as a separate line item labeled Retail Delivery Fee on the customer's order confirmation email and receipt, consistent with Colorado's requirement that the fee be itemized separately from the sales price, tax, and other charges.
