Brace For Impact: New Minnesota Delivery Fee Hits Your Wallet Amid Rising Costs!
New delivery fee in Minnesota! Starting July 1, expect a slight increase for deliveries over $100. Read more about the new law and its impact. #MinnesotaNews #DeliveryFee #Ecommerce
New Minnesota Delivery Fee Takes Effect
ST. PAUL, MN – As of July 1, Minnesotans will see a slight increase in costs for some deliveries. A newly passed law has introduced a statewide delivery fee, affecting purchases over $100 with specific exemptions.
Purpose Behind the Fee
Senator Scott Dibble (DFL-Minneapolis) emphasized that the fee, although minimal, is designed to help cover the impact of delivery traffic on state roadways. Dibble noted that with the rise of e-commerce, fewer people are driving to stores, reducing revenue from traditional road maintenance sources like license tabs, gas taxes, and motor vehicle sales taxes.
Flat-Rate Fee Structure
Regardless of the purchase amount, whether it’s $100 or $10,000, the fee remains a flat 50 cents per delivery. This fee aims to compensate for the reduction in traditional revenue sources as more consumers shift to online shopping.
Opposition and Concerns
However, the new fee has faced criticism, particularly from Republican lawmakers. Rep. John Petersburg (R-Waseca) argued that the fee is regressive, disproportionately affecting lower-income residents. He believes that alternative methods should be considered to raise funds for transportation needs.
Allocation of Funds
The revenue from this delivery fee is allocated as follows:
- 36% to metropolitan counties based on a new formula
- 27% to small cities through the small cities assistance program
- 15% to larger cities via a newly established account
- 11% to town roads
- 10% to the county state-aid highway fund
- 1% to support food delivery programs like Meals on Wheels
Exemptions
Deliveries of food, baby products, and medical supplies are exempt from the fee. Additionally, businesses earning less than $1 million annually are also exempt.
This new law reflects an effort to adapt to changing shopping behaviors and ensure the maintenance of Minnesota’s transportation infrastructure while facing both support and criticism from different sides of the political spectrum.
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