As mentionned by others in different threads, how can we disable the taxes collection following the legislation change?
Colorado has now updated the legislation saying that we do NOT have to collect Retail Delivery Fees if we made less than $500k in sales. See full email below:
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The passage of Senate Bill 23-143 created a small business exemption from the Retail Delivery Fee for businesses with $500,000 or less in retail sales during the prior calendar year. Businesses qualified for the exemption are not required to collect, report, or remit the Retail Delivery Fee.
Our records indicate that from January 1, 2021, to December 31, 2022, you reported $500,000 or less in gross retail sales as reported on your Sales Tax or Retailer’s Use Tax filing(s) excluding wholesale sales reported on Schedule A, Line 1 of the Sales Tax report.
As a result, the Department has determined that you are exempt from collecting, reporting and remitting the Retail Delivery Fee for calendar years 2022 and 2023
The Department has closed your Retail Delivery Fee account as of July 01, 2022 and removed any estimated returns for the July 2022 through June 2023 periods. If applicable, a waiver of the penalties and/or interest has been granted, and any estimated returns have been removed for periods where a filing is no longer required.
If you collected the fee from your customer on any transactions during this time period, you must either report and remit the fee to the Department or refund the fee to your customer.
If you did not collect the fee from your customers, you are not required to report or remit any retail delivery fees during calendar years 2022 or 2023. Refunds based on this exemption are not allowed for any fee amount reported and paid for any July 2022 to June 2023 periods.
If your gross retail sales exceed $500,000 in the current or a subsequent calendar year, you will be required to pay the Retail Delivery Fee for retail deliveries starting the subsequent January 1. For example, if your gross retail sales exceed $500,000 during calendar year 2023, you will be required to pay the Retail Delivery Fee for retail deliveries starting January 1, 2024.If your retail sales were $0.00 during the prior calendar year, you are not required to pay the retail delivery fee on retail deliveries until the first day of the period after 90 days after your retail sales exceed $500,000 within the current calendar year.
For additional information about or a copy of the bill, visit Retail Delivery Fees | Colorado General Assembly.
If you are required to reopen the Retail Delivery Fee account at a future date: Go to Colorado.gov/RevenueOnline, click “Additional Actions” under the Retail Delivery Fee account, select “Reopen Account”, and enter the start date in the “commence date” field, or contact the Department using a method below."
How is Shopify going to amend this for existing Colorado shops that make less than $500k and apply the retail delivery fee only for shops that make $500k+?