From Packages To Pizzas: Minnesota Eyeing New Tax on Deliveries
Don't look now, but you could be paying more to have pretty much ANYTHING delivered to your home in Minnesota.
The increasing popularity of online shopping has been going on for a while here in Minnesota and across the country. It really took off during the pandemic, when we were all staying home and tried to limit those trips to stores.
It IS pretty convenient to order something online while still in your jammies, and have it arrive at your doorstep a few days later without ever having to leave your house, right? Well, now it could cost you to have all packages delivered to your doorstep here in the Land of 10,000 Lakes.
That's because a proposal to add a 75-cent tax on just about ALL deliveries-- from pizzas and food orders to packages-- was just included in a massive transportation bill that was passed by the Minnesota House of Representatives earlier this spring.
According to the Minnesota House website, the bill (introduced as HF 580) would impose a new 75-cent tax on just about ALL deliveries to your house, except for items like clothes, groceries and prescription drugs, which are all currently exempt from state sales taxes.
Proponents of the bill say it's a new way to help meet the budget needs of the Minnesota Department of Transportation (MnDOT) which is facing increasing infrastructure costs to maintain highways, bridges and roads but is also facing declining revenues. Historically, those costs were paid for by state gasoline taxes, but more fuel-efficient cars and trucks and electric vehicles are cutting into those funds.
Opponents of the bill, which CBS Minnesota says include groups like Hospitality Minnesota, the Minnesota Retailers Association and others, say the tax is regressive and would hurt both customers and businesses.
So will this new fee actually become law in Minnesota? Well, we don't know yet. While the proposal in the transportation bill was passed by the House, it was NOT included in the Senate bill. The entire bill is currently in a conference committee, where lawmakers are meeting to work out the differences... with the delivery tax still hanging in the balance.
Seeing as MnDOT still gets most of its funding from taxes on gasoline, do you remember how much a gallon cost when you started driving? Keep scrolling to see!
Listen to Curt St. John in the Morning
Weekdays from 6 to 10 a.m. on Quick Country 96.5