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SD 1292

An Act relative to third party delivery fees for transportation infrastructure

194th Legislature (2025-2026) Introduced by Brendan Crighton

Imposes a $0.50+ per-order delivery fee on third-party orders from covered establishments, with half funding municipal transportation projects and half the Commonwealth Transportat

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Bill Summary · SD 1292

Summary: An Act Relative to Third Party Delivery Fees for Transportation Infrastructure (Senate Docket No. 1292, Bill No. 2356)

Overview

  • Bill: An Act relative to third party delivery fees for transportation infrastructure
  • Status: Proposed bill (introduced in early 2025; status not specified in the provided text)
  • Sponsor: Senator Brendan P. Crighton
  • Purpose: Establish a new per-order delivery assessment collected from customers of third-party delivery services, with revenue dedicated to transportation infrastructure improvements at the municipal and state levels.

What the bill would do

  • Create a new regulatory framework within Mass. General Laws Chapter 159B to govern third-party delivery services for food and drink.
  • Impose a mandatory per-order delivery assessment funded by customers using third-party delivery platforms for covered establishments.
  • Direct funds to local (municipal) and state transportation infrastructure programs to address road and transportation impacts from transportation network services (TNS).

Key definitions (added to Chapter 159B)

  • Covered establishment: A restaurant or other eating/drinking establishment offering same-day food or drink for sale through a third-party delivery platform.
  • Customer: An individual using a third-party delivery platform to place an online order.
  • Delivery-assessments: The customer-paid fee to the third-party delivery service company.
  • Department: The Department of Public Utilities.
  • Online order: An order placed through a third-party platform for pickup or delivery in Massachusetts.
  • Purchase price: The menu price publicly offered on the platform, excluding taxes, gratuities, or other fees.
  • Third-party delivery service company: A business facilitating same-day delivery/pickup for 20+ covered establishments.

Section 23: Delivery assessments and fund distribution

  • Annual reporting: By February 1 each year, each third-party delivery service company must report to the director (1) the number of deliveries originated in each city/town in the prior calendar year and (2) the amount collected from delivery-assessments.
  • Delivery assessment: A minimum of $0.50 per order must be applied to orders; the assessment does not apply to items not subject to state sales tax.
  • Inflation adjustment: The Department may adjust the delivery assessment at least every two years based on inflation.
  • Revenue distribution: The funds collected are divided as follows:
    • 1/2 to a municipal fund: distributed to cities/towns in proportion to the number of rides originated there in the prior year. This allocation is intended to address transportation infrastructure impacts and related public purposes (e.g., Complete Streets programs). If a city/town’s distribution is $25,000 or less, the chief executive officer of that municipality may expend the funds for these purposes without further appropriation.
    • 1/2 to the Commonwealth Transportation Fund (CTF) established in the relevant General Laws.

Who is affected

  • Third-party delivery service companies operating in Massachusetts that serve 20+ covered establishments (the threshold defined for eligibility).
  • Covered establishments (restaurants and similar venues) that participate in third-party delivery platforms.
  • Customers using third-party delivery platforms (the source of the per-order fee).
  • Municipalities and the Commonwealth, which would receive funds to support transportation infrastructure and related programs.

Procedural and timeline aspects

  • Reporting: Annual submission due by February 1 each year for the prior year’s deliveries and revenue.
  • Fee implementation: A per-order delivery assessment of at least $0.50 would be enacted on applicable orders.
  • Periodic adjustment: Inflation-based adjustments to the per-order fee occur at least every two years.
  • Allocation timeline: Revenue distributions occur after collection, with specified formulas based on prior-year ride-origin data.

Potential impacts and considerations

  • Cost to consumers: At least a $0.50 per-order fee on covered orders, potentially increasing the total cost of online food orders via third-party platforms.
  • Municipal infrastructure funding: New revenue stream for municipalities to fund transportation infrastructure, road maintenance, and related programs (including Complete Streets initiatives) based on where deliveries originate.
  • State funding: Additional support to the Commonwealth Transportation Fund for transportation infrastructure.
  • Coverage limitations: The per-order fee applies to orders from covered establishments; entities with fewer than 20 covered establishments are not defined as third-party delivery service companies under these provisions.
  • Tax considerations: The delivery-assessment does not apply to items exempt from state sales tax.

Notes

  • The bill would amend Massachusetts General Laws Chapter 159B by adding Section 23 to govern reporting, assessment, and distribution of third-party delivery fees.
  • The exact status (active, committee, or passage) is not provided in the text provided here.

Compiled from official sources — confirm details with the bill’s official record.

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