PA Considering Amazon Package Tax To Fund Road Repairs

HARRISBURG, PA — A panel Gov. Tom Wolf established to determine funding options for state road and bridge improvements is considering a packaging fee or tax that could be as much as $1 per box.

The Transportation Revenue Options Commission is mulling the levy for Amazon, FedEx, UPS, grocery stores, restaurants and other businesses that deliver to homes. Even a fee of 25 cents per package could bring in billion of dollars annually for the state.

PennDOT has contended it is facing an approximately $8 billion shortfall in its annual budget for highway and bridge construction and maintenance. The current budget is about $6.9 million per year is less than half of what the agency says it needs to properly perform those tasks.

In February, PennDOT announced it is considering a plan to charge tolls on nine bridges across the state to help pay for their replacement or rehabilitation. Toll monies would be used for construction, maintenance and operation of the bridge where the toll is collected.

The more ambitious package tax or levy, also known as an e-commerce convenience fee, would be a flat amount imposed on a consumer or business for the shipment of goods. Although no state currently has such a charge, New York and Colorado are considering it.

According to commission documents, an estimated 555 million parcels were delivered in Pennsylvania in 2019. With the coronavirus outbreak in full swing last year, that number jumped to an estimated 721.5 million parcels.

In a recent briefing to the commission, Jennie Granger, the state's deputy secretary for multimodal transportation, presented four potential fee options to the panel: 25, 50 and 75 cents and a dollar. Factoring in anticipated package delivery growth rates, Granger estimated the state could collect the following amounts over a 5-year period:

• 25 cents fee: $1.1 billion.

• 50 cents fee: $2.2 billion.

• 75 cents fee: $3.4 billion.

• $1 fee: $4.5 billion.

The commission is expected to present its recommendations to Wolf by Aug. 1.

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