Fri, Feb 23rd, 2024 - 5:49am
February 23, 2024 - 11:10am | By Ty Schonert
(St. Paul, MN) -- Minnesotans can expect to pay more for some deliveries as a tax is set to begin in July.
The bill was signed into law on May 24th, 2023. The legislation establishes a new $.50 delivery fee be placed on most retail items that cost over $100. The fee will go into effect July of 2024.
Small businesses, defined as a retailer with sales of less than $1 million per year or a marketplace provider whose sales total to less than $100,000 per year, are also exempt from paying the fee. The fee does not apply to specific categories of items.
- Made to a purchaser exempt from sales and use tax
- Made using a qualifying motor vehicle
- Resulting from a retail sale of food ingredients or prepared food, by a food or beverage service establishment, and of drugs, medical devices, or baby products.
The fee was approved by state lawmakers last year as a way to replace gas tax revenues that have been lost due to the increased use of electric vehicles. The fee is expected to raise about $60 million dollars that will be sent to local governments to help pay for road repairs.
