Starting July 1, 2024, there will be a Retail Delivery Fee of $0.50 cents that applies to certain transactions involving retail delivery in Minnesota. Retail delivery means a delivery to a person located in Minnesota of certain items as part of a retail sale.
Overview
- The fee applies to each transaction where charges for these items equal or exceed $100
- Fee rate is $0.50 per sale for delivery (i.e. per Order).
- Fee is separately stated as “Road improvement and food delivery fee” on customer invoices.
- Fee is not refundable for returns.
- Fee is refundable only if an order is cancelled prior to shipment.
- Fee does not apply to replacement orders.
- Fee went into effect July 1, 2024.
Calculating the $100 Threshold
When calculating a transaction meets or exceeds the $100 threshold, a transaction includes charges that are part of the sales price, not including the Retail Delivery Fee. See Examples below.
The Retail Delivery Fee:
- Is not subject to sales tax if separately stated on the receipt or invoice
- Applies once per transaction, regardless of the number of shipments made
- Is shown as a separate line item on the receipt as “Road Improvement and Food Delivery Fee”
- Follows Minnesota sourcing rules for application
Items Excluded when Calculating the $100 Threshold
Charges for the following items are not included when determining if a transaction meets or exceeds the $100 threshold:
- Drugs, medical devices, accessories, and supplies
- Food, food ingredients, or prepared food
- Certain baby products
- Items purchased for the purpose of resale
Frequently Asked Questions
| Question | Answer |
| What does the fee apply to? | The fee applies to taxable sales into Minnesota. |
| How much is the fee per order? | The Fee is currently $0.50 per transaction. |
| How is the fee stated on the order? | The Fee is separately stated on the order as Retail Delivery Fee Minnesota. |
| Is the fee refundable for returns? | Fee is not refundable for returns. The fee is refundable only if an order is cancelled prior to shipment. Fee does not apply to replacement orders. |