MN Businesses Rally To Oppose 75 Cent Delivery Tax

ST. PAUL, MN — Minnesota businesses are rallying to oppose a proposed fee on retail deliveries, calling it "regressive" and warning that it will hurt families and employers.

A Minnesota House bill imposes a new $0.75 retail delivery fee — officially known as a "road improvement and food delivery fee" — which would apply to everything from Amazon and Target deliveries to Pizza Hut orders.

The measure was passed within the omnibus transportation finance bill passed late last month. The fee has not been proposed in the Senate.

"The proposed delivery fee will impact every Minnesotan, no matter the size of their budget or where they live," wrote a coalition of businesses that includes grocers, hospitality services, and beverage supplies.

"Unfortunately, what this idea does not take into account is the income of an individual or family. Nor does it contemplate the access they may or may not have to food or necessary goods; and that they are already paying sales tax on purchased goods."

The state's Department of Revenue estimates the average Minnesotan will have 48 deliveries per year subject to the fee.

Advocates for the proposal say the fee is needed to generate enough money for the state's infrastructure, especially as the gas tax continues to decline as a source of revenue.