Vermont introduces delivery fee for retail deliveries under H.426 Bill

Vermont's House Bill 426, introduced on February 28, 2025, aims to implement a new delivery fee on retail transactions, marking a significant shift in how delivery services are taxed in the state. The proposed legislation establishes a $0.30 fee on all retail deliveries made by vendors required to collect sales tax, a move that could impact both consumers and businesses across Vermont.

The bill defines "tangible personal property" while explicitly excluding utilities such as electricity and water, as well as prewritten computer software. This clarity is intended to streamline the application of the new fee, ensuring that it applies uniformly across various retail sectors. Vendors will have the option to pass this fee onto consumers, who will see it itemized separately on their receipts.

Supporters of the bill argue that the fee could generate additional revenue for the state, which could be directed towards infrastructure improvements and public services. However, there are concerns about the potential burden on consumers, particularly in a time of rising costs. Critics argue that adding fees to retail transactions could disproportionately affect low-income households and discourage online shopping, which has become increasingly popular.

Debates surrounding House Bill 426 have highlighted the balance between generating state revenue and maintaining affordability for consumers. Some lawmakers have proposed amendments to exempt certain essential goods from the fee, but these suggestions have yet to gain traction.

As the bill progresses through the legislative process, its implications could resonate beyond just the immediate financial impact. If passed, it may set a precedent for how delivery services are taxed in Vermont, potentially influencing similar legislation in other states. The outcome of this bill will be closely watched by both consumers and businesses, as it could reshape the retail landscape in Vermont.