Minnesota Enacts Regressive Online Delivery Tax

Gov. Walz signs delivery tax on online orders

May 24, 2023

Today, Minnesota Governor Tim Walz signed an omnibus bill including a delivery tax, adding a $0.50 fee to all online retail orders in the state. The delivery tax – which will go into effect in 2024 – has faced widespread opposition from local groups including OneMN.org, the Minnesota Retailers Association, local elected leaders, and community members

“Minnesota’s delivery tax is going to hit working families straight in the pocketbook,” said Chamber of Progress State and Local Director Kouri Marshall. “For all the Minnesotans who don’t have access to a car and for rural households that don’t have retail in their neighborhood, this is going to be an unwelcome new line item on their family budget next year. We shouldn’t be funding state projects on the backs of low- and middle-income families.”

During consideration of Minnesota’s delivery tax, Chamber of Progress released an economic analysis which found that a doorstep tax would add more cars and emissions on roadways, limit access for those facing mobility challenges, and hurt small business growth. Chamber of Progress State and Local Director Kouri Marshall testified against the delivery tax during hearings in the Minnesota House and urged lawmakers not to include the tax in omnibus legislation.

Earlier this month, New York rejected enactment of a delivery tax. Minnesota’s passage of a delivery tax follows pushback in Colorado against the implementation of a similar measure. There, local businesses objected to a delivery tax, raising concerns they weren’t made aware of the new fees, that the taxes are complicated to comply with, and that inflation-stricken customers don’t need another price hike. The Colorado tax has also gotten attention for raising consumer costs and has sparked a lawsuit for violating voter-approved tax rules. 


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