Minnesota Retail Delivery Fee

Beginning July 1, 2024, any business involved in the retail delivery of tangible personal property (TPP) and clothing that is subject to sales tax will be required to pay a “retail delivery fee” of $0.50 that will be used to fund road improvements within the state of Minnesota. The fee will be charged once per transaction and applies to pre-tax sales of $100.00 or more. It does not apply to in-store transactions picked up at retail locations or via curbside delivery.

While the fee may seem insignificant, there are many details to consider, such as who is responsible for collecting the fee, what exclusions and exemptions may apply, should the fee be listed as a separate line item on an invoice, and compliance issues such as registration and remittance.

Although there are many moving parts, Thompson Tax can quickly help you navigate the new law’s requirements. Contact us today for all of your sales and use tax needs. We are your Trusted Tax Advisor.