MN's New Delivery Fee: What Residents Should Know

ST. PAUL, MN — Minnesotans have a new fee to look forward to paying this summer.

Starting July 1, the state's "retail delivery fee" law, which was passed during the 2023 state legislative session, goes into effect.

Under the law, a 50-cent fee is to be applied to certain transactions involving retail delivery in Minnesota. The fee should be shown as a separate line item on the receipt as "Road Improvement and Food Delivery Fee."

The fee applies to each transaction where charges for these items equal or exceed $100:

• "Tangible" products normally subject to the state sales tax
• Clothing (which is exempt from the state sales tax)

When calculating whether a transaction meets or exceeds the $100 threshold, a transaction includes all charges that are part of the sale, not including the retail delivery fee.

The retail delivery fee applies once per transaction, regardless of the number of individual shipments made to fulfill the order.

The fee should not be subject to sales tax if separately stated on the receipt or invoice.

According to the state, you are not subject to the retail delivery fee if you are:

• A retailer, who for the previous calendar year, had Minnesota retail sales less than $1,000,000
• A marketplace provider facilitating a sale for a retailer, who during the previous calendar year, made less than $100,000 in Minnesota retail sales through the marketplace