{"id":11844,"date":"2023-05-26T18:15:32","date_gmt":"2023-05-26T18:15:32","guid":{"rendered":"https:\/\/taxops.com\/?p=11844"},"modified":"2024-09-10T15:17:32","modified_gmt":"2024-09-10T15:17:32","slug":"minnesota-passes-new-delivery-fee","status":"publish","type":"post","link":"https:\/\/taxops.com\/minnesota-passes-new-delivery-fee\/","title":{"rendered":"Minnesota Passes New Delivery Fee"},"content":{"rendered":"\r\n<div class=\"wp-block-spacer\" style=\"height: 53px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\r\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" data-id=\"11869\" class=\"wp-image-11869 lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-1024x536.png\" alt=\"Delivery in Minnesota\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" data-id=\"11869\" class=\"wp-image-11869 lazyload\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-1024x536.png\" alt=\"Delivery in Minnesota\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\r\n<\/figure>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 53px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\r\n<p class=\"wp-block-paragraph\"><em>New retail delivery fee in Minnesota adds yet another compliance mechanism for taxpayers to deal with, proving just how little states have learned from the earlier Colorado experience. <\/em><\/p>\r\n<\/blockquote>\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 29px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><span style=\"font-size: 10.5pt; font-family: 'Open Sans',sans-serif; color: #666666;\">The Minnesota Legislature wrapped up a historic legislative session, passing several significant bills. One particular provision of the transportation package that we\u2019d like to call out is the 0.50c retail delivery fee (RDF). \u00a0The reasoning behind the RDF is that gas tax revenue in down, accordingly revenue for infrastructure is down as well, so the RDF could offset the gas tax related losses. Imposition of an RDF keeps the tax burden on at-home shoppers, who instead of driving to buy goods and funding state revenue via a gas tax, will fund infrastructure via the RDF.<\/span><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><span style=\"font-size: 10.5pt; font-family: 'Open Sans',sans-serif; color: #666666;\">The RDF will be assessed on transaction sales made to Minnesota residents and will generate an estimated $100 million in revenue each year. There are some exemptions, including a small seller exemption for businesses making less than $1 million in retail sales in the previous year.<\/span><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><span style=\"font-size: 10.5pt; font-family: 'Open Sans',sans-serif; color: #666666;\">The revenue from the fee will be used to fund infrastructure projects, such as road repairs and bridge construction, which see more wear and tear on local roads and neighborhood streets with the increase in front door deliveries. (As a Minnesota resident, my vehicles sincerely thank you for your contribution to making the state\u2019s roads better.) \u00a0<\/span><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>The Takeaway<\/strong><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">This might be good public policy, but the chosen mechanics are questionable. Colorado\u2019s recent experience pioneering a Retail Delivery Fee of 0.27c (increasing to 0.28c, effective July 1, 2023) was an administrative nightmare for stakeholders.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Minnesota\u2019s RDF is effective July 1, 2024, Departmental guidance not yet provided (to be fair to the Department, this law was just passed). It will be yet another challenge for taxpayers, and the vendors in the e-commerce and sales tax ecosystem to adjust to yet another set of unique rules and mechanisms.\u00a0<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">We would have much preferred the legislature to choose an existing mechanism (i.e., the sales tax) as an avenue to raise revenue for infrastructure.\u00a0Doing so would have made implementation for taxpayers significantly less challenging.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">&nbsp;<\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 29px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Let&#8217;s Talk Tax<\/a><\/div>\r\n<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 29px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 29px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 47px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><a href=\"https:\/\/taxops.com\/connecting-to-your-clients-with-stacey-roberts\/\">Connecting to Your Clients With Stacey Roberts<\/a><\/li>\r\n\r\n\r\n\r\n<li><a href=\"https:\/\/taxops.com\/research-and-development-credits-cpe-2\/\">A Practical Approach to ASC 740 CPE<\/a><\/li>\r\n\r\n\r\n\r\n<li><a href=\"https:\/\/taxops.com\/research-and-development-credits-cpe\/\">Research and Development Credits CPE: Into the Weeds on Lucrative Credits<\/a><\/li>\r\n\r\n\r\n\r\n<li><a href=\"https:\/\/taxops.com\/uncovering-mysteries-of-use-tax-cpe\/\">Uncovering the Mysteries of Use Tax CPE: Use Tax Accrual, Validation, and Compliance<\/a><\/li>\r\n\r\n\r\n\r\n<li><a href=\"https:\/\/taxops.com\/retailer-sales-tax-challenges-and-compliance-cpe\/\">Retailer Sales Tax Challenges and Compliance CPE: Navigating State Nexus Rules, Market Facilitator Laws, and Reporting<\/a><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 47px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\r\n<\/div>\r\n\r\n\r\n\r\n<div class=\"wp-block-spacer\" style=\"height: 47px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>New retail delivery fee in Minnesota adds yet another compliance mechanism for taxpayers to deal with, proving just how little states have learned from the earlier Colorado experience. \u00a0 The Minnesota Legislature wrapped up a historic legislative session, passing several significant bills. One particular provision of the transportation package that we\u2019d like to call out [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[229,226],"tags":[252,284,12,126,265,827,18,19,30,101,80],"class_list":["post-11844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-and-local","category-tax-news","tag-accountant","tag-cfo","tag-colorado","tag-cpa","tag-finance-professional","tag-national-association-of-state-bar-tax-sections","tag-sales-and-use-tax","tag-sales-tax","tag-state-and-local-tax","tag-state-tax","tag-tax-provider"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2023\/05\/Minnesota-New-Retail-Delivery-Fee.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=11844"}],"version-history":[{"count":13,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11844\/revisions"}],"predecessor-version":[{"id":13665,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11844\/revisions\/13665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/11869"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=11844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=11844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=11844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}