How does Shopify handle the Colorado Retail Delivery Fee?

Did you get an answer to this? We use Avalara with Shopify and export our Shopify orders to an ERP which also uses Avalara. I created an item in Shop as configured in my screenshot attached. Using Shopify Flow, I automated a task to add the item to a created order anytime the order contained a CO address. You could potentially do this without Flow using a ‘bogo’ automatic discount based on a customer segment.