The proposed bill establishes a new chapter, Minnesota Statutes chapter 168E, which introduces a retail delivery fee on the delivery of tangible personal property in Minnesota. Retailers making such deliveries will be required to add a fee to the price of the delivery, starting at $0.40 per delivery from January 1, 2024, and increasing to $0.50 by July 1, 2027. The bill outlines definitions related to retail delivery, including terms like "retailer," "motor vehicle," and "tangible personal property." It also specifies that the fee will not be included in the sales price for tax calculations and must be itemized separately on receipts.

Additionally, the bill provides exemptions for certain transactions and entities, such as those involving tax-exempt tangible personal property. It mandates that the proceeds from the retail delivery fee be allocated to various transportation funds, including the highway user tax distribution fund and transit accounts. The bill amends existing statutes to incorporate the new fee and its administration, ensuring that the same audit and collection provisions applicable to other taxes will apply to this fee as well. All provisions of the bill are set to take effect on January 1, 2024.

Statutes affected:
Introduction: 270C.15, 297A.61