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During the pandemic, small businesses, local neighborhood stores, and many restaurants have struggled to stay afloat.
Supply chain issues, high gas prices and public health precautions have stunted economic growth and created new barriers for those who run a business. Restaurants in particular have lost significant revenue, having closed dining rooms and forced to find creative ways to stay afloat.
Fortunately, we now find ourselves in a time of rebuilding and recovery. However, some Minnesota lawmakers seem focused on slowing recovery efforts by supporting HF 580, an unnecessary regressive tax on Minnesotans that would hurt those who cannot afford it.
The proposed delivery fee charged to nearly every Minnesota consumer undoes any post-pandemic progress, and will negatively affect everyone involved. As the country looks for thoughtful solutions to solve transportation challenges, the proposed fee will do more harm than good. HF 580 proposes an unprecedented tax of $0.75 on every delivery made to Minnesota residents. with the state $18 billion budget surplusThere is no justification for charging additional tax on almost all deliveries. Plus, that cost and some of it will be passed on to Minnesota consumers who need every possible dollar to raise their families.
This tax will affect not only restaurants, but all of Minnesota that depends on deliveries. Almost half of Americans Reliance on daily delivery services. Busy families, the elderly and the disabled depend on delivery services daily to maintain their livelihoods and access essential daily items. They depend on food, household items and personal care items to be delivered to their homes, and this proposed tax will only add another burden. HF 580’s effects go further than many realize and ultimately provide no benefits, costing families more money for the things they need to survive.
Winston Hollis
The large impact promised to companies by this tax would also be detrimental to their recovery. As it is, when a retailer is responsible for collecting fees, the invoice does not account for the complexities required for the retailer to build a system for tracking, collecting, and remitting fees. Many companies do not have the means to support this tax, which creates additional hardships for those they face. Restaurants and businesses alike will need to invest in resources to comply with the fee, as many do not have the means to do so.
And let’s not forget the delivery drivers who will also be negatively affected. By discouraging delivery with regressive tax rates, there will be less demand and fewer opportunities for delivery drivers to supplement their income.
Just say no to this proposed new tax and yes to keeping Minnesota businesses and consumers on the path to economic growth.
Hollis Winston is the mayor of Brooklyn Park, Minnesota.
