How are taxes handled for orders that are shipped to customers located in Minnesota?
- Recharge Checkout on Shopify
- Recharge Checkout on BigCommerce
- Migrated Shopify Checkout Integration
- BigCommerce Integration
- Custom
The state of Minnesota implemented a Retail Delivery Fee effective July 1st, 2024, on orders delivered to a Minnesota address with a value of $100 or more. Recharge recommends reviewing Minnesota Retail Delivery Fee on the State Department's website to determine if you are responsible for collecting this fee.
By default, Recharge does not automatically apply this fee to orders. You must enable the Retail Delivery Fee through your Tax Settings page in Recharge:
- Log in to your Recharge merchant portal.
- Click Settings and select Taxes.
- Enable the Charge customers the Minnesota Retail Delivery Fee option.
- Save your changes.
Once enabled, a $0.50 Retail Delivery Fee is applied to orders with a delivery address in Minnesota and a value of $100 or more for all products. Consult a Legal Advisor to assess the potential impact of this fee on your store.
You must enable this setting in Recharge if you use Avalara. You can enable this setting for tax estimation purposes if you use the Shopify Checkout Integration, however, Shopify handles all tax charges and calculations for stores using the Shopify Checkout Integration.
