retail delivery fee charge

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A customer in CO was charged a .29 delivery fee. Having not seen this before, I looked it up. Long story short, I don't sell over $500,00/year so it should not be applied. I mistakenly tried to get help with a chat. That was a real waste of time.

Just wondering if anyone has inquired why this is being charged, when it's not applicable.

sunshineannie*gardens

3892 View listings

Posted 1 year ago·Last reply 1 year ago

4 comments

sunshineannie*gardens

OP1 year ago

3892 View listings

Thanks, I figured another seller would know. Seems unfair to the buyer but gotta have bigger shoes than mine to fight that. Can't wait until IL goes for it and soaks us too. ugh.

You'd think the chat "help" person could have shown me that easy enough, if they know what they were doing, instead of a long line of nonsense sentances (not english speaking obviously), and then just leaving!

comics-scifi-collectibles

Mentor1 year ago

1932 View listings

@sunshineannie*gardens it's always best to ask here first then if we can't help contact CS.

Glad I was able to help you. Let me know if your buyer gives you any flack... or just share the link with them.

comics-scifi-collectibles

Mentor1 year ago

1932 View listings

@sunshineannie*gardens eBay is the marketplace facilitator and is required by law to collect state sales tax and the delivery fee that CO charges.

See the details on this page >>

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#homerule

sunshineannie*gardens

OP1 year ago

3892 View listings

here is a clip of the article -

Colorado and Minnesota Lead the Way

When considering the competing factors of eCommerce growth in conjunction with falling fuel tax revenue, it shouldnâ€™t be surprising that states started to think about delivery fees as a way of funding state and local transportation infrastructure. Colorado was the first to the table with a retail delivery fee that became effective on July 1, 2022. Minnesota followed suit as of July 1, 2024. This chart shows that while the fees operate similarly, they are by no means identical:

Characteristic	Colorado	Minessota
Fee Amount	$.29	$.50
Marketplace Facilitators Liable	Yes	Yes
Per Order or Per Line	Per Order	Per Order
Small Seller Exclusion	Less than $500,000 of retail sales annually	Less than $1,000,000 of retail sales annually
Small Order Exclusion	No	Yes â€“ Orders less than $100
Option for Seller to Absorb the Fee	Yes	Yes
Reported on a separate Form	Yes â€“ DR 1786	No â€“ but taxpayers must register to add the tax line to the standard return
Fee included in tax base	Yes â€“ in some home rule localities	No

While its true that in both Colorado and Minnesota that the RDF only applies if the order has at least one item that is taxable under applicable state law, Minnesota adds the additional wrinkle that the fee also applies on sales of non-taxable clothing. Conversely, Minnesota fee does not apply to the sale of prepared food, including restaurant deliveries. The fee also does not apply to the sale of baby products. There are no such exceptions in Colorado. Colorado reports having collected $75.9m in FY 23 and $69.7m in FY 24. If you are wondering why tax collections dipped in the second year, when Colorado first adopted their RDF, they did not have a small seller exclusion. They amended their law effective July 1, 2023 to remove the obligation from sellers who have less than $500,000 in in-state sales. Since Minnesotaâ€™s fee has been on the books for only a short while, no actual revenue statists exist just yet. However, they project to collect $59m in FY 25 and $65.3m by FY 27.