Some State lawmakers in Washington are exploring a new revenue option to address transportation challenges: a “retail delivery fee” on online purchases. As maintenance costs rise and gas tax collections decline, this proposal aims to generate funds for maintaining city and county roads.
The proposal under consideration could range from $.25 to $.75 per delivery charge and would be collected during the online checkout process. It is estimated that a $.30 fee could generate about $112 million annual in tax revenue. Currently, Colorado and Minnesota have retail delivery fees, resulting in $79.5 million and $59 million in tax revenue. certain limits and restrictions apply to the fees charged in these states. Critics argue that this fee effectively increases the state sales tax, potentially impacting consumer prices and taxes. Policymakers will need to assess the impact on low-income households and ensure fairness. They will also need to consider the State’s administrative costs associated with implementing and collecting the fee. This proposal is still under study, but it is something to keep an eye out for. A similar $5 delivery fee implemented in Seattle, caused a 30% drop in food delivery order volumes and devastated local restaurants. What do you think? Stay tuned for more information.
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11/28/2024 07:48:41 am
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