Vermont Eyes Retail Delivery Fee

Vermont lawmakers have taken an early procedural step toward what could become a statewide retail delivery fee, opening a policy discussion that mirrors debates playing out in other states over delivery costs, gig work, and transportation funding.

H.863 (list of sponsors below) was read for the first time on February 3, 2026, and referred to the House Committee on Transportation. The draft language outlines several specific tasks. State officials would be asked to identify a mechanism for collecting a retail delivery fee, determine whether it would apply per transaction or per delivery, set possible sales thresholds for covered entities, estimate expected revenue, and project implementation costs, including software development, staffing, rulemaking, and public outreach.

The proposed definition of “retail delivery” is broad. It would cover the physical delivery by vehicle of tangible personal property purchased as part of a retail sale to a Vermont address, including alcoholic beverages, clothing, grocery items, and taxable meals. Home heating fuel deliveries are excluded.

Although framed as a transportation-related revenue concept, the proposal enters a wider national conversation about how governments handle the economics of app-based delivery services and low-margin convenience markets.

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Rep. Leonora Dodge — D, Chittenden-23
Rep. Zon Eastes — D, Windham-1
Rep. Rebecca Holcombe — D, Windsor-Orange-2
Rep. Kathleen James — D, Bennington-4
Rep. Bram Kleppner — D, Chittenden-13
Rep. Kate Logan — P, Chittenden-16
Rep. Jubilee McGill — D, Addison-5
Rep. Michael Mrowicki — D, Windham-4
Rep. Barbara Rachelson — D, Chittenden-14
Rep. Dara Torre — D, Washington-2

Delivery Fees and Consumer Costs

Retail delivery fees have been adopted or considered in other states as a way to generate revenue tied to the growing volume of delivered goods. Supporters often frame such fees as a modest charge connected to road use, congestion, or other public costs associated with delivery traffic.

At the same time, even small per-transaction fees raise broader questions about consumer prices and the cost of convenience. Delivery services, particularly app-based food delivery, are generally discretionary spending. If new fees are layered onto already-high service charges, some consumers may reduce usage or shift to pickup and in-person shopping.

For lawmakers, the practical challenge is designing a system that is administratively workable, predictable for businesses, and transparent for consumers.

Broader Policy Context

While H.863 is framed as a transportation-related framework bill, delivery regulation has also intersected with other policy debates nationally, including questions around app-based work and platform economics.

Seattle, for example, drew national attention in 2024 after implementing a minimum payment standard for app-based delivery drivers. Following that change, delivery platforms added new fees to customer bills, and restaurants reported shifts in delivery demand.

Vermont’s proposal is not a wage mandate, and H.863 does not address worker pay. However, the experiences of other jurisdictions highlight how quickly delivery-related policy changes can affect prices, ordering behavior, and the broader delivery marketplace.

Vermont’s Early Stage

At present, H.863 does not commit Vermont to any specific delivery fee. It initiates a framework development process within the Transportation Committee. Lawmakers will need to evaluate projected revenues, administrative costs, business impacts, and consumer effects before deciding whether to enact a fee.

Transportation funding needs, vehicle miles traveled, and the continued growth of delivered retail goods may all influence the discussion.

For now, the proposal represents a structural step: building the groundwork for a possible statewide delivery charge. Whether it remains a narrow transportation revenue concept or expands into broader delivery policy debates will depend on how the bill develops in committee and beyond.

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Dave Soulia | FYIVT

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