Imposes a fifty cent delivery fee (tax) per transaction for deliveries in the state.
Summary
H6365 would create a new chapter in Rhode Island’s tax law imposing a 50-cent retail delivery fee on each taxable retail delivery by motor vehicle to a customer in the state. The fee applies to retailers, including marketplace facilitators and referrers, when their annual Rhode Island motor-vehicle-delivered retail sales reach at least $500,000. Retailers may pass the fee on to purchasers, but they are not required to do so, and if separately stated it is excluded from the sales price for sales tax purposes.
The bill also sets out how the fee works in common situations. It applies once per transaction even if multiple shipments are involved, applies to mixed shipments if any taxable item is included, and is generally nonrefundable except when a delivery is canceled. It exempts deliveries to tax-exempt purchasers, food and food-ingredient sales, prepared food, and deliveries from food and beverage service establishments. Sales completed at a physical store where the customer takes possession there are not covered. The Division of Taxation would administer and enforce the new chapter through rules and regulations, and the act would take effect October 1, 2025.
Impact
The bill would add a new retail delivery fee chapter to Title 44 of the General Laws and give the Rhode Island Division of Taxation authority to collect and administer the fee. It would affect retailers, marketplace facilitators, referrers, delivery-based sellers, and consumers receiving taxable goods by motor vehicle in Rhode Island, while exempting smaller sellers below the $500,000 threshold and several categories of food-related transactions. The measure would create a new revenue stream intended to offset infrastructure and transportation impacts associated with increased delivery traffic.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall posture appears policy-driven and revenue-oriented rather than overtly contentious in the available record. The findings section frames the bill as a response to growing delivery traffic, road wear, and municipal maintenance costs, while also acknowledging the need to limit burdens on smaller retailers. The structure of the bill suggests an attempt to balance infrastructure funding with business concerns by setting a sales threshold and exempting food deliveries.
Contention
The main points of contention are likely to be the new per-transaction fee itself, the administrative burden on retailers and marketplace platforms, and whether the $500,000 threshold is the right cutoff for exempting smaller businesses. Retailers and delivery-dependent sellers may object to the added cost and compliance requirements, while supporters are likely to emphasize infrastructure funding and fairness to taxpayers who bear road maintenance costs. Food businesses and tax-exempt purchasers are explicitly protected, indicating that lawmakers anticipated concerns about essential purchases and certain service sectors.