In the continuing story of “Make State Sales Taxes As Complicated As Possible,” are you aware of the Colorado Retail Delivery Fee that went into effect July 1, 2022?
Passed with less than 60 days’ notice, a $0.27 fee per delivery now must be reported separately on customer invoices, and 100% remitted to the state for every retail order being delivered by motor vehicle (including common carriers like FedEx, UPS and USPS) for taxable goods to a Colorado address. To add to the complexity, this fee itself is considered a freight charge subject to sales tax sometimes, depending on the rules in the city or jurisdiction of the delivery address.
While this only applies to businesses meeting economic nexus of $100,000 gross sales in the prior calendar year in Colorado, since this is expected to generate tens of millions of dollars in revenue, other states are already considering similar plans.
Does your accounting system handle this? Nope. Not a single accounting system on the planet is even configurable to manage a challenge like this. So, what do you do? You select a flexible system that can be made to handle this, as you and we have done by choosing AccountMate. If you’d like to automate all your state sales tax calculations along with the remittances to jurisdictions across the land, so that nothing falls through the cracks—let’s chat about adding the TaxJar Integration Module to your AccountMate system.