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Why 'doorstep taxes' are making Amazon, DoorDash deliveries more expensive
CNBC· 2025-10-10 14:51
Core Insights - The article discusses the rise of delivery fees imposed by state and local governments, often referred to as "doorstep taxes," which are seen as a new form of taxation on consumers [1][5][14] Government Actions - States like Minnesota and Colorado have already implemented delivery fees, with Colorado charging 28 cents and Minnesota 50 cents on orders over $100 [2][3] - Other states, including Nebraska, Ohio, and New York, are considering similar fees ranging from 25 to 75 cents per transaction [3] Revenue Generation - Colorado's delivery fee is projected to generate $5 billion in revenue over the next decade [3] - Legislators view these fees as an effective way to fund government services, especially as traditional tax sources face resistance [6][18] Economic Context - The shift towards a delivery economy has prompted states to impose these fees as a legitimate means of revenue collection [6][17] - Experts suggest that these "sneaky fees" are essentially disguised taxes that consumers may not readily notice [5][11] Consumer Impact - The article highlights concerns that these fees disproportionately affect low-income families who rely on delivery services [15][16] - There is a growing trend of "neighborhood fees" at locations like airports, where additional charges are levied on concessions [9][10] Industry Response - Tech companies, including Amazon and DoorDash, are opposing these taxes, arguing they are regressive and harmful to families living paycheck to paycheck [14][15] - The tech industry views these delivery taxes as ineffective short-term solutions that do not address underlying budget issues [17] Future Considerations - Some lawmakers believe that imposing delivery fees could encourage more thoughtful consumer behavior and help fund infrastructure projects [18][20] - The article suggests that as consumers become accustomed to these fees, states may continue to explore this revenue avenue, despite potential negative impacts on small businesses [13][12]