Jump to content
ATX Community

State Retail Delivery Fees


Lee B

Recommended Posts

"Blame Colorado.

Beginning in 2022, the state began imposing a retail delivery fee on retail sales of tangible personal property delivered by motor vehicle to a location in the state. In order to apply, the sale had to include at least one item of tangible personal property subject to sales or use tax. The retailer is required to collect the retail delivery fee from the purchaser and remit the fee to the Colorado Department of Revenue. "

"Significantly, Minnesota and New York are now proposing their own retail delivery fees, similar to the Colorado statute.

In fact, Minnesota is looking at raising its proposed retail delivery fee from 40 to 75 cents. "

"Not surprisingly, the Colorado fee has drawn criticism from the business community, according to Scott Peterson, vice president of U.S. tax policy and government relations for Avalara. 

The fee has to be reported on a separate return, so every retailer has to file two tax returns monthly — one for sales tax, and another return just for the delivery fee — that's a big step backward in simplification."

Since most states are predicting declines in state tax revenue, I expect these delivery fees (Tax ) will spread to more states.

 

  • Like 3
Link to comment
Share on other sites

  • 4 weeks later...
On 4/26/2023 at 12:56 PM, GLJEANNE said:

I don't think it will get passed here in Minnesota.  The Senate took it out of their bill, they didn't have the votes to pass it.  Could still change in conference committee, but I'd be surprised.

Just read an article that the Minnesota House and Senate just passed a $.50 Delivery Fee on Retail Sales greater than $100.

  • Like 1
Link to comment
Share on other sites

2 hours ago, schirallicpa said:

Of course NYS is considering it.  NY would hate to miss out on another opportunity to tax us.  

If you caught the NBC evening news last night NYS was #2 (California #1) in most people exiting their state.  Wonder why.  

Maybe more accurately "trying" to leave CA/NY.  Breaking nexus is a long road once established in either.

Many years ago, I was trying to get approval to print a NYS payroll form.  Went a test print, with fake data, as required.  Somehow, NYS interpreted it (it was sent to their forms approval office) as being actual data and dunned me for a couple of years.  Thankfully the employee names were things like "Test Data" and "John Q Public", so they eventually let it go.  I am sure I am "on their list" since one of my replies was similar to "come get me, I have no nexus in NYS, and had, at that time, not been in NYS since '75 when I was a child". I can only logically assume the person in the form approval office forgot to set some sort of flag when they ran the forms through their scanner and the data "slipped" into the live data stream.

Instead of trying to add a fee on delivered items, states should be a bit more forceful with delivery vehicle registration. Blue vans with MN, WY, TN, etc. plates have no business making deliveries in CA, for example.  The last mile vans, at least here, belong to someone who contracts with the shipper to make the last mile delivery (similar to how many driving the white trucks do).

  • Like 1
Link to comment
Share on other sites

20 hours ago, schirallicpa said:

Of course NYS is considering it.  NY would hate to miss out on another opportunity to tax us.  

If you caught the NBC evening news last night NYS was #2 (California #1) in most people exiting their state.  Wonder why.  

10,000 NYS families bought Fairfield County, CT, homes in 2020. Prices soared in CT. (Probably dropped in NY.)

Link to comment
Share on other sites

While not likely strange in history, times seem strange now that I am more enlightened.  States where I would likely have domiciled, while in mobile retirement - best tax and health care options for my planned situation, have made law changes which I do not agree with and would have caused me to leave their state.  Enough so that if I have to pass through, I will spend as little as possible in those places.

Not exactly thrilled with CA politics either, but as a CA lifer, it is a system I know and understand, and have been through some luck, and a little (now un)common sense, have benefited enough to leave our kids with a generous legacy (via home appreciation).

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...