Commissioners review retail delivery fee proposal that would direct 40% of proceeds to counties

Thurston County commissioners on Jan. 22 reviewed staff information about a proposed statewide retail delivery fee intended to raise transportation revenue and discussed whether to support it at the legislative steering committee.

Commissioner Grant summarized the measure as a fee charged on each retail sale that constitutes a delivery and said it would exempt retailers with less than $1,000,000 in prior-year retail sales and orders under $50. Grant said the fee would not apply to non-taxable food, prescription drugs, hygiene products and certain medical equipment, and that revenue would be deposited in a transportation funding stabilization account.

Under the model described at the meeting, the fee would start on Jan. 1, 2027; be increased annually by 3 percent; and distribute 40 percent of revenues to counties using the same formula as the motor-vehicle fuel tax distribution. Grant told colleagues the revenue must be spent solely for preservation and maintenance of county-owned roadways or transportation assets.

Commissioners asked clarifying questions about scale and cost to consumers. One commissioner asked whether the fee would amount to "pennies" or a larger charge; staff said the fee would be a small percentage and provided a more detailed breakdown in an issue paper available to commissioners. Grant said he was inclined to support the concept given the state's transportation budget shortfall but asked colleagues to flag concerns before the legislative steering committee meeting.

No formal county vote on the measure was recorded in the meeting transcript; commissioners were preparing a position for the steering committee and awaiting further cost details from staff.