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New Minnesota Delivery Fee Begins July 1st.
ST. PAUL (WJON News) - Retailers across Minnesota preparing for a new delivery fee that will be assessed starting in July.
A Retail Delivery Fee of $0.50 will be applied to certain retail delivery transactions starting July 1st. The $0.50 fee will be added to the bill for personal property or clothing orders equaling more than $100 and delivered to a Minnesota address.
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The fee will be assessed on the total order if over $100, not each product or the number of shipments made to satisfy the order. Here’s how the fee would be applied:
According to the fact sheet from the Minnesota Department of Revenue, the Retail Delivery Fee does not apply to:
- Deliveries to a purchaser that is exempt from sales tax
- Deliveries by motor vehicles with permits issued under Minnesota Statutes, Chapter 169 or 221
- Deliveries by a food and beverage service establishment, whether made by a third-party delivery service or the actual establishment
- Purchases picked up at the retailer’s business location, including curbside delivery
- Deliveries to locations outside of Minnesota
Drugs, medical devices, and food products are exempt.
Officials say the fee is expected to generate more than $60 million in revenue to help local governments repair roads and bridges.
The Minnesota Department of Revenue has published a Fact Sheet about the new Retail Delivery Fee. Find it by clicking here.
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