Minnesota's new 'Amazon fee' is now in effect

Among the new laws going into effect across Minnesota in July is a new surcharge dubbed the "Amazon fee."

Minnesotans will have a fee of 50 cents added to select online orders that cross a $100 threshold. Household products, furniture, clothing, and electronics are all subject to the fee. However, items such as food, baby products, or medical supplies are exempt.

The list of what applies and what doesn't mostly echoes what goods are subject to state sales tax. However, that's not universally true. Clothes, which are not subject to the state sales tax, are subject to the "Amazon fee." Prepared foods, on the other hand, are exempt.

Additionally, as KARE11 notes , retailers with annual revenue of less than $1 million are among the exemptions.

The state estimates that the new fee could add up to $64 million annually. Revenue from the fee will go toward roads and public transit, which DFL lawmakers say is justified because of the negative impact online deliveries have on roads and traffic congestion.