Retail Delivery Fees: What Businesses Need to Know in 2025
Retail delivery fees (RDFs) are a hot topic in the world of state tax, and they're proving to be quite controversial. While only Colorado and Minnesota currently have these fees in place, over 10 other states are actively considering them. This could significantly impact businesses that deliver goods to customers.
Why the Buzz Around RDFs?
States are looking for new ways to generate revenue, and taxing retail deliveries is one option gaining traction. Lawmakers in states like Hawaii, Indiana, Maryland, Mississippi, Nebraska, Nevada, New York, Ohio, Oregon, Vermont, and Washington are all exploring the idea.
However, these fees are also facing strong opposition. Businesses, including major players like Amazon and DoorDash, argue that these are essentially "doorstep taxes" that complicate operations and could deter online sales.
What's Happening with Existing RDFs?
Even in states where RDFs are already law, there's pushback:
- Colorado: A bill to repeal Colorado's RDF was introduced in January 2025, though it was ultimately "killed." This highlights the divisive nature of the fee, even if the state's budget needs made its repeal unlikely.
- Minnesota: Several bills aim to either eliminate Minnesota's RDF entirely as of July 1, 2025, or at least exempt clothing sales from it. The current inclusion of clothing is particularly challenging for retailers, as most clothing is otherwise sales tax-exempt in Minnesota.7
The Future of Retail Delivery Fees
Despite the opposition, the interest in RDFs isn't fading. Bills are moving forward in states like Hawaii, Maryland, New York, and Vermont.8 Even Oregon is studying the concept, though its lack of a general sales tax adds complexity.
If more states adopt RDFs, it will create a growing compliance burden for businesses. Each state can have different rules, making it a challenge to track and remit correctly.
How SGM Tax Services Can Help
Navigating the complexities of retail delivery fees, alongside other sales and use tax requirements, can be overwhelming. As specialists in US sales and use tax, SGM Tax Services is here to help your business stay compliant.
We can assist with:
- Multi-State Sales & Use Tax Compliance and Filings
- Exemption Certificate Management
- Tax Engine Implementation and Tax Advisory
- Complex Tax Research and Audit Defence
- Business Licensing
Don't let changing tax laws become a roadblock for your business. Reach out to SGM Tax Services to see how we can streamline your tax compliance.
Contact: https://www.sgmtaxserv.com/contact-us.php
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