Nuisance fee must be collected on certain purchases.
In 2023, the Minnesota Legislature created a new Retail Delivery Fee as part boosting transportation funding. The fee is expected to bring in roughly $200 million over its first four years.
As of July 1, 2024, a Retail Delivery Fee of 50 cents 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.
The fee applies to each transaction where charges for these items equal or exceed $100:
- Tangible personal property subject to sales tax
- Clothing
The fee does not apply to retailers with less than $1,000,000 in retail sales during the previous calendar year.
Learn more about the Retail Delivery Fee here: Retail Delivery Fee | Minnesota Department of Revenue (state.mn.us).
The Minnesota Department of Revenue recently shared an update on the Retail Delivery Fee taxline:
Businesses with active sales tax accounts are now registered for the Retail Delivery Fee taxline. The Retail Delivery Fee taxline will appear on Sales and Use Tax Returns for periods ending after July 1, 2024.
For more information regarding the fee, see Retail Delivery Fee.
Removing the Retail Delivery Fee Taxline
If you are registered for the Retail Delivery Fee taxline and you do not need to report the fee, you can log in to your e-Services account to remove the taxline.
To remove the Retail Delivery Fee taxline:
- In the Sales & Use Tax panel, select Manage Locations.
- Select the Location Code for the location requiring edits.
- Select Edit Location.
- Make any edits or enter required information in the General Information and Location 2022 NAICS Code sections.
- Select Next.
- In the Retail Delivery Fee End Date drop-down menu, select the year and month when the fee no longer applies. If you are removing the fee because it does not apply to you, select 2024 – July.
- Select Next.
- If necessary, add special local or other taxes.
- Select Next.
- If necessary, add local taxes.
- Select Next to review the changes you made.
- Select Submit.
If you have any questions about the Retail Delivery Fee and how it impacts your business, please contact Minnesota State Director John Reynolds: [email protected], 651-293-1283.
