Colorado Retail Delivery Fee¶
Colorado charges a flat Retail Delivery Fee on every delivery by motor vehicle to a Colorado address that includes at least one taxable physical item. It is one fee per order — not per item — and the state resets the amount every July 1. The extension can collect it at checkout, show it as its own line, and include it in the sales data TaxCloud files, so the fee ends up on your Colorado Retail Delivery Fee return.
Collection is off until you turn it on.
Are you liable?¶
You generally do not owe the fee if:
- your Colorado retail sales in the previous year were $500,000 or less, or
- you have no physical presence in Colorado and your sales there do not exceed $100,000.
The extension does not check this for you — turning the setting on is your declaration that your store is liable. If you are unsure, ask your tax advisor or see the Colorado Department of Revenue's fee page.
Turning it on¶
Go to Stores → Configuration → Sales → Tax → TaxCloud Settings and open the Colorado Retail Delivery Fee group.
| Setting | Default | What it does |
|---|---|---|
| Collect Retail Delivery Fee | Disable |
The switch. While disabled, no order is ever charged the fee. |
| Motor-Vehicle Delivery Methods | — (none) | The shipping methods that count as delivery by motor vehicle. Only orders shipped with a selected method are charged. |
| Fee Amount | 0.31 |
The exact amount charged per eligible order, in US dollars. |
| Retail Delivery Fee TIC | 11098 |
How the fee line is identified to TaxCloud. Leave it alone unless TaxCloud tells you otherwise. |
All four settings follow the store view you are configuring, like every other TaxCloud setting — see how scope works.
Select every shipping method that puts a vehicle on the road: your carriers (UPS, FedEx, USPS, flat rate…). Leave in-store pickup and similar non-delivery methods unselected — orders using them are never charged, which is exactly what Colorado's rules call for.
The fee amount is yours to keep current
Colorado resets the fee every July 1 — check the current rate and update Fee Amount here when it changes. TaxCloud does not calculate or correct this amount: whatever you enter is exactly what your customers are charged and what is remitted with your return. The field refuses obviously wrong values (below $0.00 or above $2.00), but keeping it at the current rate is on you.
What your customers see¶
When an order qualifies — shipped to a Colorado address by one of your selected methods, with at least one taxable physical item in the cart — a separate line labelled Colorado Retail Delivery Fee appears in the cart and checkout totals, on the order confirmation and emails, and on printed invoices. The fee is part of the order total but is never mixed into the sales tax line.
Orders that do not qualify show no line at all. If the customer changes their address, shipping method, or cart so the order no longer qualifies, the fee disappears on its own.
A customer with a tax exemption certificate still pays the fee — Colorado's fee applies to the delivery, and a sales-tax exemption does not remove it.
Refunds and cancellations¶
The fee follows the delivery, not the items:
- Full refund or cancellation — the fee is refunded to the customer and removed from what TaxCloud remits, automatically.
- Partial refund (the delivery happened, some items come back) — the fee is not refunded, matching Colorado's rules. The credit memo simply does not include it.
Filing¶
Nothing extra to do. The fee rides along in the order data TaxCloud already receives, identified by its TIC, and TaxCloud files the Colorado Retail Delivery Fee return from it. See Filing your returns.