Washington Dems consider tax for online deliveries to pay for road repairs

Washington state Democrats are considering imposing a new tax on online deliveries to raise money for road projects.

According to KOMO News, on Tuesday during a meeting of the Joint Transportation Committee, Andrew McLean, of consulting firm CDM Smith, told state lawmakers that a retail delivery fee could be applied to items purchased online and delivered by Amazon or UPS and passed along by retailers to Washingtonians.

Consultants claimed that a fee of 30 cents could generate as much as $112 million in 2026 if the items are taxable.

The effort is being pushed by far-left State Senator Marko Liias (D-Edmonds) who chaired the committee meeting and previously supported the embattled Climate Commitment Act which Democrats claimed would only raise gas prices by “pennies” but jacked fuel prices by 50 cents a gallon. The legislation also spiked utility costs.

During the discussion, Liias celebrated that the CCA spiked gas prices saying, “The upshot of all of that is we're buying less gas. Here in Washington we collect 49 cents a gallon, so if people buy fewer gallons, that means there's less dollars to support really important things like road maintenance, traffic, and congestion relief,” Liias said. “I think what we're kind of looking at is that 25- to 30-cent range. And we want to hear is that reasonable or is that unreasonable and what do people think about the idea."

“We want people to weigh in. If this is something people really don't like, we want to hear that,” Liias said.

Washingtonians overwhelmingly rejected the CCA and worked to get a measure on the ballot for November to repeal the tax. Washington drivers already pay the fifth highest fuel taxes in the US and have among the highest gas prices of any state.

A report from the Washington State Transportation Commission published in 2023 projected a $600 million drop in revenue related to road usage over the next 28 years as not enough gas tax revenue is coming to keep up with transportation costs affected by inflation and more drivers opt for electric cars.

This is even as lawmakers fill their coffers from revenue generated by the CCA.

The consultants pointed to Colorado and Minnesota, both of which have imposed this retail delivery fee. Colorado charges 28 cents on every delivery and generated nearly $80 million over a year, while Minnesota begins collecting the fee next month of 50 cents on deliveries valued at $100 or more and is expecting to bring in approximately $60 million per year.

According to The Center Square, the Association of Washington Business and the Washington Retail Association, the Washington Hospitality Association, and the Washington Trucking Associations oppose the tax, claiming it will increase the costs of goods and services for consumers.

The tax will likely be approved if Democrats maintain control of the Legislature in January.