An Act relative to retail deliveries

194th Legislature (2025-2026) Introduced by Orlando Ramos

Imposes a $0.35 per retail delivery tax on MA vendors delivering tangible goods, targeting those with over $1M in annual sales.

Overview

Purpose: Establish an excise tax on retail deliveries of tangible personal property in Massachusetts, targeting high-volume vendors and raising revenue via delivery activity.

Sponsor: Representative Orlando Ramos (Springfield, 9th Hampden)

Bill status: Proposed bill filed in the 2025-2026 session (House Docket No. 2574; House Bill No. 3217). The text provided sets the framework for a new section in Chapter 64H of the General Laws.

Key Provisions

New excise amount: $0.35 per retail delivery.

Applicability threshold: The excise applies only to vendors whose sales in the prior taxable year or the current taxable year exceed $1,000,000.

Payment and administration: The excise is paid to the Massachusetts commissioner at the time required for filing the return under Chapter 62C, Section 16.

Definition of “retail delivery”: A retail sale of tangible personal property by a vendor for delivery by motor vehicle (owned or operated by the vendor or another) to a purchaser at a location in Massachusetts. The delivery must include at least one item that is taxable under Massachusetts sales and use tax laws.

Scope: Applies to vendors of tangible personal property delivering within the Commonwealth, subject to the stated exemptions and any other provisions in Chapter 64H.

Affected Parties

Targeted entities: Vendors of tangible personal property that conduct retail deliveries in Massachusetts and have annual sales exceeding $1,000,000 in the relevant year.

Potential impacts on: Retailers, e-commerce platforms, logistics and delivery providers used by vendors, and possibly consumers if costs are passed through.

Revenue use: The text does not specify dedicated funding streams; proceeds would be collected as general or specified revenue per the administration’s allocation in accordance with existing tax laws.

Administrative and Timeline Considerations

Administration: Collected by the Massachusetts Department of Revenue (the commissioner).

Compliance timing: Vendors would remit the excise at the same time as other returns filed under Chapter 62C, Section 16.

Effective date: The bill text does not specify an effective date; as introduced, it would require passage by the General Court and any required regulatory rulemaking before taking effect.

Practical Implications

Policy intent: Likely aimed at capturing tax-like revenue from increasingly common delivery-based retail models.

Economic impact: May raise operating costs for large retailers with substantial delivery volumes; potential pass-through to consumers, depending on competitive dynamics and pricing strategies.

Compliance considerations: Requires tracking of annual sales by vendor to determine eligibility; adds a per-delivery reporting obligation to the existing tax filing process.

If you’d like, I can compare this proposal to existing delivery-related taxes or summarize potential fiscal impacts based on hypothetical delivery volumes.

Bill