New fees on e-commerce deliveries floated for road repairs

A new fee added to retail deliveries statewide could raise millions of dollars for road and bridge maintenance and repair, according to a recent analysis that was sought by a group representing Washington's cities and towns.

Why it matters: With rising construction costs and a growing need for infrastructure repairs — along with a fall in gas tax receipts as electric vehicles and more fuel efficient cars are adopted — policymakers are challenged to find new sources of revenue, according to the fee report presented to the Washington State Joint Transportation Committee last month.

What they did: The analysis looked at potential revenue from fees ranging from 25 cents to 75 cents on delivered goods as well as the early impact from similar fees in Colorado and Minnesota.

What they found: The study found that a statewide fee of 30 cents per order could generate between $45 million and $112 million in revenue in 2026, growing to between $59 million and $160 million by 2030.

• The highest revenue estimate assumes no exemptions, while the lowest revenue estimate assumes an exemption for orders under $75 and retailers who have less than $1 million in annual revenues, per the report.

The other side: In response, tech coalition Chamber of Progress released a report last week saying a delivery tax would increase pollution and carbon emissions by encouraging more individual shopping trips and place a disproportionately higher burden on lower income households.

What they're saying: "Our research finds that by grouping orders together, online delivery is cutting emissions in half over individual trips to the store," Chamber of Progress spokesperson Chris MacKenzietold Axios. "Those efficiencies also reduce roadway usage, keeping our infrastructure in better shape."

• "If lawmakers want to maintain our roads and reduce emissions, a delivery tax is exactly the wrong direction."

Yes, but: Sen. Marko Liias, (D-Edmonds) the chair of the Joint Transportation Committee, told Axios in an email the delivery fee is just "one of a number of things we're looking at to come up with the resources to make the needed investments" and is by no means a done deal.

What's next: Liias said he has not heard that any legislators plan to introduce the proposal in the next legislative session but, he said, a solution to the challenges of "too many potholes and too much traffic" must be found.