Retail delivery fee settings

Colorado and Minnesota charge retail delivery fees on certain deliveries to locations in their respective states.

Not all sellers who do business in these states will have to collect the fees from customers, depending on whether they meet the retailer exclusion requirements, so you may have to tell Tax Determination if and when you must collect a retail delivery fee. You can do this on the Tax Preferences page.

By default, new organizations created in S1 are set to collect the Colorado retail delivery fee and not collect the Minnesota retail delivery fee. Child organizations will inherit their retail delivery fee settings from the parent organization, but you can edit the child's settings separately.

Note:

Only users with the Client_Manager role in Tax Determination can access the General Settings page.

The Tax Preferences page shows the periods of time when your organization is set to collect a retail delivery fee or not. Changes to your fee collection settings are listed in chronological order.


Column	Description
Status	Indicates when you collected, are collecting, or will collect the retail delivery fee or not Expired: Past fee collection settings Active: Your current fee collection setting Pending: Future changes to your fee collection settings
Collect Fee	Indicates whether you collected, are collecting, or will collect the retail delivery fee during a given time period (Yes or No)
Effective Date	The start date of a fee collection setting (inclusive) The earliest effective date is the date when the state began imposing the fee (2022-07-01 for Colorado and 2024-07-01 for Minnesota).
Expiration Date	The end date of a fee collection setting (exclusive) If blank, Tax Determination will continue to collect or not collect the retail delivery fee indefinitely after the effective date.

Enable retail delivery fee collection

The following example shows how fee collection settings work in Tax Determination. You should make changes to your fee collection settings based on your organization's business needs.

Let's say that your organization delivers items in Colorado but not Minnesota. Your fee collection settings would look something like this:


Colorado	Minnesota
Line 1	Line 1
Status: Active Collect Fee: Yes Effective Date: 2022-07-01 Expiration Date: -	Status: Active Collect Fee: No Effective Date: 2024-07-01 Expiration Date: -

Your organization decides to start doing business in Minnesota beginning September 2024. You will need to tell Tax Determination to start collecting the Minnesota retail delivery fee on the first day of September 2024.

On the Tax Preferences page, click + Add a date next to Minnesota.
Enter the following information in the pop-up:
- Select Yes from the Collect Fee dropdown.
- For Effective Date, enter 2024-09-01 or click the Calendar icon and select the date.
- You can leave Expiration Date blank if your organization has no plans to stop doing business in Minnesota.
Click Add date in the pop-up.
Click Save changes on the Tax Preferences page.
A message will appear saying that your changes have been saved.

Your fee collection settings would now look something like this:


Colorado	Minnesota
Line 1	Line 1
Status: Active Collect Fee: Yes Effective Date: 2022-07-01 Expiration Date: -	Status: Active Collect Fee: No Effective Date: 2024-07-01 Expiration Date: 2024-09-01
	Line 2
	Status: Pending Collect Fee: Yes Effective Date: 2024-09-01 Expiration Date: -

Note:

You can't edit or delete settings for past dates. To edit settings for future dates, add a new setting with the correct information. When you save the new setting, it will override any existing settings for the same dates.

Turn off retail delivery fee collection for a period

Let's say your that your organization decides to stop doing business in Colorado in 2025 but will resume in 2026. You will need to tell Tax Determination to not collect the Colorado retail delivery fee for the year 2025 and then start collecting the fee again in 2026.

On the Tax Preferences page, click + Add a date next to Colorado.
Enter the following information in the pop-up:
- Select No from the Collect Fee dropdown.
- For Effective Date, enter 2025-01-01 or click the Calendar icon and select the date.
- For Expiration Date, enter 2026-01-01 or click the Calendar icon and select the date.
Click Add date in the pop-up.
Click Save changes on the Tax Preferences page.
A message will appear saying that your changes have been saved.

Your fee collection settings would now look something like this:


Colorado	Minnesota
Line 1	Line 1
Status: Active Collect Fee: Yes Effective Date: 2022-07-01 Expiration Date: -	Status: Active Collect Fee: No Effective Date: 2024-07-01 Expiration Date: 2024-09-01
Line 2	Line 2
Status: Pending Collect Fee: No Effective Date: 2025-01-01 Expiration Date: 2026-01-01	Status: Pending Collect Fee: Yes Effective Date: 2024-09-01 Expiration Date: -
Line 3
Status: Pending Collect Fee: Yes Effective Date: 2026-01-01 Expiration Date: -

Sovos Docs

Retail delivery fee settings

Enable retail delivery fee collection

Turn off retail delivery fee collection for a period

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