DELIVERED: Retail Delivery Fees are Coming to Minnesota

Fees, fees, and more fees. Wasn't legislation just passed to combat excessive fees?

A delivery fee is coming to Minnesotans beginning this summer: fifty cents for most deliveries over $100.

Minnesota Retail Delivery Fee...Why?

With increased purchases and use of electric cars and trucks, gas tax revenue is down. The new fee is expected to raise $60 million.

From Bruce Nustad of the Minnesota Retailers Association: “The idea is that it helps augment transportation funding, there’s some decline in gas tax revenues..." "...it’s a new way to boost transportation funding.”

Where Does the Money Go?

Revenue raised from the new fee will go to local governments to fund road repairs and maintenance. 1% of the revenue will go to food delivery services such as Meals on Wheels.

Not All Deliveries Are Subject to the New Fee

Drugs (the legal prescribed kind), food, medical devices and supplies, and some (but not all) baby products are exempt from the new fee. Businesses that earn less than $1 million are exempt, too.

Minnesota Isn't the First State to Implement a Delivery Fee

Colorado actually tacked on a twenty-seven cent fee in 2022.

Opinion

As long as roads actually get fixed and maintained, I can stomach the extra fifty cents. I don't want working-class folks to get nickel-and-dimed to death; but if there is noticeable improvement to the roads, I'll accept it.

I don't often order anything over $100, so at least it won't be a daily addition to the plethora of taxes and fees for us working people.

H/T: KSTP