Starting July 1, 2024, there will be a Retail Delivery Fee of $0.50 that applies to certain transactions involving retail delivery in Minnesota.
The fee applies to each transaction where charges for these items equal or exceed $100:
- Tangible personal property subject to sales tax
- Clothing
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. See Examples below.
The Retail Delivery Fee:
- Is not subject to sales tax if separately stated on the receipt or invoice
- Applies once per transaction, regardless of the number of shipments made
- Is shown as a separate line item on the receipt as “Road Improvement and Food Delivery Fee”
- Follows Minnesota sourcing rules for application
Retailer Exclusions
You are not liable for the Retail Delivery Fee if you are one of the following:
- A retailer, who for the previous calendar year, had Minnesota retail sales that totaled less than $1,000,000
- A marketplace provider facilitating a sale for a retailer, who during the previous calendar year, made Minnesota retail sales through the marketplace that totaled less than $100,000
- A marketplace provider is a person or business that owns, operates or otherwise controls a physical or electronic marketplace and facilitates the sale of a third-party Seller’s products (i.e. Amazon)
When calculating the retail sale threshold for the retailer exclusion, include all taxable and nontaxable retail sales. Do not include sales where the purchaser is buying for resale. The purchaser must give you an exemption certificate.
For more details, please visit the Minnesota Department of Revenue’s website.
If you have questions on how this may impact your business, please reach out to your CDS expert at (888) 388-1040.
