The Independent Fiscal Office (IFO) recently made a presentation to the Transportation Advisory Committee on a proposed retail delivery fee based on similar legislation enacted in Colorado. The fee in Colorado applies to any retail sale of personal property subject to sales tax for delivery by motor vehicle. The IFO’s presentation noted that a similar fee in Pennsylvania would generate significant revenues, as a 50-cent fee could generate an estimated $368 million based on the average of 5.8 taxable deliveries per adult per month.  

PSATS advocated for this revenue stream during Governor Wolf’s Transportation Revenue Option Commission (TROC) in 2020, where Executive Director David Sanko served as a member. At that time, we suggested 100% of this stream should be dedicated to local roads and bridges since virtually all deliveries occur on local roads. 

PSATS supports additional revenue streams dedicated to local transportation funding. Any new funding solutions should acknowledge that increased home shopping and food deliveries have fundamentally changed driving patterns, and any package delivery fee should be dedicated solely to local roads and bridges, which bear the brunt of e-commerce. Click here to view the presentation slides.