Minnesota’s new Retail Delivery Fee, the “Road Improvement and Food Delivery Fee,” takes effect July 1, 2024.
Retailers will be subject to a $0.50 fee on certain transactions that are $100 or more and involve a “retail delivery” in Minnesota. This includes retail deliveries of taxable tangible goods, as well as retail deliveries of clothing. However, the retail delivery fee will exclude retail deliveries of food, food ingredients, prepared food, drugs, medical devices, accessories, and supplies, and certain baby products. The fee will apply once per invoice regardless of the number of shipments made. Retailers (including out-of-state retailers and marketplace providers) can either directly pay the fee or collect it from the purchaser.
You are not liable for the Retail Delivery Fee if you are one of the following:
- A retailer, who for the previous calendar year, had Minnesota retail sales that totaled less than $1,000,000
- A marketplace provider facilitating a sale for a retailer, who during the previous calendar year, made Minnesota retail sales through the marketplace that totaled less than $100,000
More information may be found here.
