The Cost of Convenience: How Delivery Fees Are Quietly Changing

As online shopping and food delivery surge across the U.S., a new wave of hidden costs is emerging — not from corporate markups, but from governments themselves. States and municipalities are introducing what critics call “doorstep taxes,” per-order fees designed to fund infrastructure and offset declining fuel tax revenues. These seemingly minor charges, ranging from 25 to 75 cents per transaction, are gradually reshaping how Americans pay for the convenience economy.

In Colorado, for example, a 28-cent delivery fee has been in place since 2022, expected to generate over $5 billion in revenue over the next decade. Minnesota followed with a 50-cent charge on orders exceeding $100. Several other states — including New York, Maryland, and Hawaii — are evaluating similar legislation. Economists say these measures are part of a broader trend in which governments are seeking alternative revenue streams as tax bases shift.

Governments Step In as Corporate Fees Proliferate

For decades, companies have found creative ways to add costs — from “convenience” and “security” fees to premium surcharges — often without drawing much consumer backlash. Now, public authorities are adopting the same approach. “Even corporate monopolists don’t have a monopoly on rent extraction,” says Mariano Torras, professor of finance at Adelphi University.

According to Mike Bernard, chief tax officer at Vertex, states are turning to such fees because they represent a politically safer alternative to property or income taxes. “If people won’t drive to the store, they’re not paying gas tax,” Bernard explains. “But if the UPS truck makes the trip instead, the infrastructure still needs funding.”

Local governments are also embracing “neighborhood fees” — micro-charges applied in confined commercial zones such as airports. Philadelphia International Airport, for instance, introduced a 3% surcharge on all concessions last year. Vertex data shows the number of such government-imposed fees nationwide has ballooned from 400 in 2019 to over 1,400 today, signaling that “doorstep taxes” may be just the beginning.

The Pushback: Industry and Consumer Concerns

Tech giants are mounting a strong resistance. Amazon, DoorDash, Alphabet, Grubhub, and Instacart — all part of the Chamber of Progress — argue that these taxes are regressive and unfairly burden working families. “When we saw delivery taxes emerge, it was clear who got hurt most — families living paycheck to paycheck,” said Hope Ledford, the group’s civic innovation policy director. She notes that delivery services are essential for many elderly or disabled residents who rely on them for food and medicine.

However, research complicates this picture. Studies by Capital One show that higher-income households are far more likely to shop online. Legislators like New York’s Robert Carroll contend that modest fees — such as his proposed $3 per-package levy — would mostly impact affluent consumers and help fund public services, including potential free bus transportation under a Zohran Mamdani administration.

A Growing Fiscal Experiment with Uncertain Outcomes

Economists caution that while these fees might ease budget strains, they do not offer structural solutions. “Retail delivery fees are a short-term patch, not a long-term fix,” warns Arjun Mahadevan, CEO of tax platform Doola. He argues that the real risk lies in normalizing stealth taxation, which blurs transparency and undermines public trust.

As U.S. cities and states continue testing this fiscal experiment, policymakers face a delicate balance: raising funds without fueling resentment in an already fee-fatigued economy. The coming years may determine whether doorstep taxes become a stable funding mechanism or just another layer in America’s growing cost of convenience.