The Minnesota Department of Revenue recently distributed information regarding the new Minnesota Retail Delivery Fee that was passed in the 2023 legislative session and became effective July 1, 2024. A retail delivery fee of $.50 now applies to some transactions where a retail sale of tangible personal property subject to sales tax is delivered to a person located in Minnesota and the transaction amount exceeds $100.
Who this applies to:
A retailer with Minnesota retail sales totaling more than $1,000,000 for the previous calendar year.
A marketplace provider facilitating sales for a retailer where the Minnesota retail sales through the marketplace totaled more than $100,000 for the previous calendar year.
What this applies to:
Deliveries of tangible personal property subject to sales tax and clothing when the transaction is $100 or more. The transaction includes all charges that are part of the sales price, not including the delivery fee, and applies once per transaction regardless of the number of shipments made.
Examples of deliveries the fee applies to include deliveries by third-party shippers, couriers, and deliveries using a company vehicle. It does not apply to curbside pick-up at a retailer’s business location, or to deliveries outside of Minnesota.
Specific items excluded when calculating the $100 threshold include drugs, medical devices, food, food ingredients, or prepared food, certain baby products, items delivered electronically, utilities delivered through wires or pipes, or items purchased for the purpose of resale. A more comprehensive list can be found on the Minnesota Department of Revenue website.
How to Administer
The total amount collected or due for the Retail Delivery Fee will be reported on Sales and Use Tax Returns. Businesses with an active sales tax account are now registered for the Retail Delivery Fee, and the taxline will appear on Sales and Use Tax Returns for periods ending after July 1, 2024. If you need to either add the taxline or you do not need to report the fee, instructions to add or delete the taxline can be found in the Minnesota Department of Revenue communication.
Calculation examples, additional information, and FAQs are included on the Minnesota Department of Revenue Retail Delivery Fee webpage but please contact your Boyum advisor with any questions.