Madeline,
I think for someone who doesn't already use Avalara they should be able to get going with the Sage instructions by either (a) creating another sales tax code used for orders that don't include delivered items and (b) the non-taxable situation seems like it would be ok since the .27 wouldn't compute either.
The bigger issue is whether other states pile in and add their own unique fees. I bet if Colorado shows a material gain from implementing this fee that other states will follow.
BTW, I bet the cost to have Avalara collect, compute and report the .27 is 3x the fee charged itself ......( If you can ever even figure out what Avalara is charging for the Colorado fee -- which won't be easy IMO )
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Wayne Schulz
wayne@s-consult.comSchulz Consulting
(860) 516-8990
Moodus, CT
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Original Message:
Sent: 06-23-2022 10:04
From: Madeline Stefanou
Subject: ICYMI: Colorado Retail Delivery Fee begins July 1, 2022
There are some challenges with the setups Sage is recommending. The "fee" of $ 0.27 for Colorado Retail Delivery only applies if "real items are being delivered"; so not applicable if you are selling /Misc Items and not "shipping anything". It also only applies if there are "any" taxable items on the order. So it the order includes all "non taxable" inventory items, it is not applicable. I am suggesting to my clients that don't use Avalara to add a /Misc Item Code to those orders that ship into Colorado and have taxable inventory on the order, /CORDF Colorado Retail Delivery Fee Charge at (1) @ 0.27/each. Have it post to ta special Sales Tax Payable Account and report off that as needed. And if they are using Avalara, they will still add that /CPRDF item code but at $0.00 each, and the description will say "Colorado Retail Delivery Fee of $ 0.27 included in total taxes". The /Misc Coded needs to be defined in Avalara per their documents.
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Madeline Stefanou
RKL eSolutions, LLC
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