It was only a matter of time until the above-referenced virus would spread to somewhere else!
It’s never enough: MN lawmakers propose 40-cent retail delivery tax
It was only a matter of time until the above-referenced virus would spread to somewhere else!
It’s never enough: MN lawmakers propose 40-cent retail delivery tax
We still haven’t found a good solution for CO, now we will have to potentially worry about MN too?
Park across the street, deliver by dolly?
I really don’t understand why they need to invent a new tax, isn’t this fully covered by gas tax, sales tax, vehicle taxes and registration, and tolls? The more complicated the system, the easier to game, the harder to enforce, and the harder it is for decent people to follow and implement. Ugh.
Each tax is targeted slightly differently. Gas taxes, tolls, and these delivery taxes are meant to tax people in proportion to their use of roadways. Someone occasionally using the Civic is going to cause less wear and tear than a semi clocking a million miles a year. Thus why tolls are often per-axel and why it’s an “intended feature” that these things hit bigger vehicles and high mileage users harder.
A delivery tax would, in theory, encourage people to place fewer, larger orders which would lead to fewer delivery trips, fewer truck miles, less traffic, less road wear, etc. It would also apply if the delivery vehicle doesn’t run on dinosaurs, which is increasingly a thing.
That last part is why this was introduced right now and why it (or something like it) will become more common in the future. Gas taxes are, effectively, being phased out as the government incentivizes the phase out of gasoline engines. Automobiles are not being phased out, nor are roads. So you still want a usage tax to fund roadways. This is a stab at that. I’m not going to write an opinion piece on whether or not this is a good idea. I’m just stating the facts as how such ideas are incubated.
FYI, Avalara blog post regarding the Minnesota variant of RDF.
Read to the end to see the latest news that the Colorado General Assembly is considering two measures that would alter or eliminate its retail delivery fee!
Sorry to be the conveyor of bad news, but…
Minnesota Enacts New Retail Delivery Fee
There is a silver lining for “small businesses”… the legislation apparently contains an exception, whereas the RDF does not apply to retailers that made retail sales totaling less than $1 million in the previous calendar year.
Anyone care to guess how long it will be until the virus spreads to somewhere else, or exactly where that somewhere else will be???
If you haven’t voted PLEASE VOTE. https://epicor-manufacturing.ideas.aha.io/ideas/KNTC-I-2648
Its really hard for me to believe there are only 30 customers impacted by this nonsense (current vote count on the idea).
I’m sure it’s much higher, they just may not have found it.
Gotta remember, a lot of us noisy people here are B2B.
Avalara has the numbers. They know who their Epicor customers are, as well as their taxable sales amounts for CO and MN.
Yes, that is why they should be able to develop a better solution for this. Avalara’s excuse when I complained about this is, its not a tax, Avalara is only for taxes. I really don’t care about the semantics. They ought to calculate the required value and send it back through the epicor integration to easily print on the paperwork which is what the law requires.
Imagine if Avalara said, we know its not a tax, but we handle this complicated shit for you… They would drain the competition. Anyone can compete with Avalara – because “They are just a tax engine”
Redirect Avalara Traffic in your hosts file to your custom built REST Endpoints and you could technically return same responses and make Epicor happy (Proxy). Tap into other Engines for the math.
Anyways, Avalara get yer shit together
Actually if someone isnt using Avalara, maybe you can make your own Tax Endpoint and have it pull values from Excel or UD Table and populate automatically, vs messing with the Manual Tax Setup in Epicor.
Just to add a bit of clarity, hopefully, here is the latest Avalara blog post regarding this subject…
New Minnesota retail delivery fee starts July 2024
One point called out in the blog post is regarding the $1,000,000 threshold for small businesses. Here’s an excerpt from the bill regarding that…
The Minnesota RDF is starting on July 1st, 2024. How are you all dealing with it?
Here’s Avalara’s notice:
https://knowledge.avalara.com/bundle/opc1717729686048/page/minnesota_retail_delivery_fee_July_01_2024.html
Tax Code: To support Minnesota’s Retail Delivery Fee, Avalara recommends using its Retail Delivery Fee tax code to calculate the fee. (This tax code is also used to calculate the Colorado Retail Delivery Fee.)
|Tax Code|Description|
|OF400000|Road Improvement and Food Delivery Fee|
When transactions include a line item for the delivery fee using Avalara tax code OF400000, AvaTax factors in physical products when calculating the fee. If the sum of the line Amount less any discounts for all products in the transaction (with some exceptions) equals or exceeds $100, then the retail delivery fee will be calculated.
We are not dealing with it, fortunately, because our gross sales into Minnesota during 2023 totaled less than $1,000,000, as mentioned in the web page that you linked.
The following recent Avalara blog post highlights key similarities and differences between Minnesota’s RDF and Colorado’s RDF:
Are you ready for the Minnesota retail delivery fee?
Which state is next? California? Washington? New York? Anyone else foresee a federal retail delivery “fee” imposed upon common carriers and/or contract carriers?
Maybe Illinois, but I think they’ve been able to wring enough cash out of legalized gambling to balance the budget in the near term.
LOL, no. Not in any foreseeable future. Federal officials are spending their time and energy on other things. Raising revenue, which is a polarized issue all by itself, via an entirely new method of taxation is not gonna happen. Not with this congress, court, president, nor whoever will occupy the White House next year.