New Report Pushes Online Delivery Tax in Washington

Washington State residents could face a new tax on retail, food delivery

Jul 1, 2024

A new report commissioned by the Washington State Joint Transportation Committee explores the potential for a statewide online delivery tax, or “retail delivery fee.” The report, which follows backlash in Seattle over a local delivery fee, examines the potential impact of a 30-cent tax on food delivery, Amazon and Walmart purchases, and other online orders, with the proceeds going to a transportation fund. Similar delivery taxes have recently been rejected by New York and Maryland while passing in Minnesota despite opposition from business and consumer groups.

“In today’s economic environment, a regressive delivery tax would hit working families hard,” said Chamber of Progress Director of Civic Innovation Policy Ruth Whittaker. “Washington consumers are already facing increased costs for food, clothes, and other basics. You would think after Seattle’s tax on food delivery backfired on local legislators, that Washington lawmakers would realize there isn’t an appetite for this right now.”

The Committee’s report cites concerns over falling gas tax revenues as a reason for instituting a delivery tax, but fails to recognize the positive impact that pooled delivery can have for lowering emissions and decreasing traffic congestion.

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