Washington State Considers Retail Delivery Fee Amid Declining Gas Tax Revenues and Rising Infrastructure Costs

Washington state is considering imposing a “retail delivery fee” on items delivered by e-commerce companies and traditional stores. This comes as the state’s transportation funding is decreasing due to the increasing popularity of cars becoming more fuel efficient and electric. A state panel estimates that by 2035, gas tax revenues will fall below $1 billion, a decline of more than $300 million from the previous year. Transportation planners say infrastructure upkeep is increasing as vehicles become heavier, a trend driven by the rise of EVs and more delivery vehicles. A study by CDM Smith found that a fee of 30 cent per in-state delivery could generate between $45 million and $112 million in 2026, and by the end of the decade it would rise to between $59 and $160 million. However, business groups are rallying against the idea, arguing that it would impact the poorest customers and the smallest businesses.