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New Minnesota Retail Delivery Fee Now in Effect

As of July 1, 2024, there is a new Retail Delivery Fee of 50 cents that applies to certain transactions involving retail delivery in Minnesota. Retail delivery means delivery to a person located in Minnesota of certain items as part of a retail sale. (See Minnesota Statutes, Chapter 168E.)

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

Tangible personal property subject to sales tax

  • Clothing

  • Deliveries

The Retail Delivery Fee applies to specific transactions involving a retail delivery, such as:

  • Deliveries by third-party shippers

  • Deliveries using couriers

  • Deliveries using a company vehicle, unless an exemption applies

The Retail Delivery Fee does not apply to:

  • Deliveries to a purchaser that is exempt from sales tax

  • Deliveries by motor vehicles with permits issued under Minnesota Statutes, Chapter 169 or 221

  • Deliveries by a food and beverage service establishment, whether made by a third-party delivery service or the actual establishment (For a definition of food and beverage service establishment, see M.S. 157.15, subd. 5.

  • Purchases picked up at the retailer’s business location, including curbside delivery

  • Deliveries to locations outside of Minnesota

Calculating the $100 threshold

When calculating whether a transaction meets or exceeds the $100 threshold, a transaction includes all charges that are part of the sales price, 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 er 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

Items Excluded when Calculating the $100 Threshold

Charges for the following items are not included when determining if a transaction meets or exceeds the $100 threshold:

  • Drugs, medical devices, accessories, and supplies

  • Food, food ingredients, or prepared food

  • Certain baby products (see Baby Product Exemption)

  • Items delivered electronically, such as computer software

  • Utilities delivered through wires or pipes, such as natural gas and electricity

  • Items purchased for the purpose of resale

Fee Registration

Businesses with active sales tax accounts are now registered for the Retail Delivery Fee taxline. The Retail Delivery Fee taxline will appear on Sales and Use Tax Returns for periods ending after July 1, 2024.

Adding the Retail Delivery Fee Taxline

If you are not registered for the Retail Delivery Fee taxline, you must log in to your e-Services account and add the Retail Delivery Fee taxline. For details and instructions on how to do this, see Add Local and Other Taxes to a Sales and Use Return.

Please email any questions you may have to The MTA is working with the Department of Revenue for further clarification on the fee and to answer your questions.



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