States have traditionally relied on gas taxes to fund road and bridge maintenance, but with the rise of fuel-efficient cars and electric vehicles, this revenue source is dwindling. Many state leaders argue that alternative funding is necessary.
Cities, on the other hand, are grappling with increased traffic from delivery trucks, driven by the growing preference for home deliveries. Several states are considering fees on these deliveries as a potential solution for road funding.
Colorado, in July 2022, became the first state to implement a retail delivery fee, charging 29 cents per delivery. The revenue, exceeding $160 million, supports infrastructure projects like highways, bridges, electric vehicle charging stations, and pollution reduction initiatives.
Initially challenging for businesses due to detailed receipt requirements, Colorado lawmakers simplified the law, easing compliance burdens. Minnesota followed suit in 2023 with its own fee, targeting purchases over $100.
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Critics, including some retailers and Republican lawmakers, argue that such fees burden consumers, especially those already facing financial strain. However, proponents argue they are essential for “future-proofing” transportation funding amidst changing vehicle trends and urban congestion.
Lawmakers in New York, Illinois, and other states are exploring similar measures, prompted by studies on the feasibility and revenue potential of retail delivery fees. These proposals aim to address infrastructure needs exacerbated by the expanding delivery sector.
Despite debates over economic impact and operational challenges, proponents see growing interest nationwide in leveraging delivery fees to sustain transportation infrastructure amid evolving urban landscapes and consumer behaviors.