As of July 1, Minnesotans must pay a new 50-cent fee on retail deliveries over $100. This tax applies to virtually any qualifying purchase that requires a delivery, from places like Amazon or Walmart to your local lumberyard. Whether the purchase is made online, in person, or over the phone makes no difference. If a single large order is split into multiple deliveries, each one incurs the fee.
This delivery fee will disproportionately impact rural Minnesotans, the elderly, and those with disabilities who rely on deliveries for essential goods. It adds complexity for small businesses already struggling with rising costs and regulations. And it sends a clear message that Minnesota is hostile to consumers and businesses – especially as deliveries become more of a demanded expectation. The short-sightedness is truly astounding.
The justification for this tax – that it will fund road improvements – is just a marketing ploy. The projected revenue is minimal compared to our infrastructure needs, and delivery vehicles already pay gas taxes, registration fees, and other charges that go toward road maintenance. There are other, better ways to fund roads and bridges, like fully dedicating the revenue from the existing state’s auto parts sales tax.
This new retail delivery tax is part of the $10 billion in tax increases passed by Minnesota Democrats in 2023. At the time, Minnesota had a $19 billion budget surplus. Democrats chose to use that money for a spending spree to satisfy their activist base instead of giving the surplus back to taxpayers like they promised. They ran out of money, so to make the budget work they had to raise your taxes even more.
They broke their word. They ignored the financial stress that many Minnesotans are facing. And they prioritized their base over your family.
The timing couldn’t be worse. Inflation has already put intense pressure on family budgets. I talk to people every single day who tell me how hard it is to afford the basics like food, fuel, housing, and energy.
For the typical Minnesota family, this retail delivery tax is more than just an annoyance. It is a symptom of a much larger problem – that Democrats in government view Minnesotans as an endless source of revenue rather than as hardworking individuals just trying to make ends meet for their family.
Minnesota already has one of the highest tax burdens in the nation. We rank 7th in the country for state and local tax burden as a percentage of income, according to the Tax Foundation. WalletHub places us 5th for overall tax burden. The constant reach into taxpayers’ pockets must stop.
I’ve heard from a lot of you about this new delivery tax already. Rest assured, I share your anger and frustration. When the new legislative session begins in January, I will introduce a bill to repeal this unnecessary and burdensome tax.
It shouldn’t be so difficult to get by. It is time to put the pocketbooks of hardworking Minnesota families first.