Retail Delivery Fee Analysis - Feasibility Study

2026-11-03

The tasks of the consultant include , but are not limited to : 1 . Research tax structures similar to the proposed Retail Delivery tax in other California cities . Proposed legislation , and legislation pending implementation may be included . ( Note : The consultant may opt to include cities in other states , but the analysis should also address how the legal taxing environment differs from California .) The review should include , but not be limited to : a . Effective date of ordinance / law ( if implemented ), b . Details of the ordinances / laws to include : i . Definition of retail deliveries and types of products and business models ( local business , delivery network company , common / hybrid carrier ) that meet the criteria for assessment ii . Tax basis and assessment structure ( e . g ., charge on goods or services or total charges , flat fee per order or percentage , assessed on retail seller or delivery company , applicable to volume of deliveries or distance traveled ) iii . Exempt products ( prescriptions drugs , medical devices , or groceries ) or service providers iv . Other notable exemptions and whether exemption is statutory or negotiated ( e . g . exemption for a delivery company with injurisdiction warehouse or headquarters ) v . Mechanism for collection and remittance of taxes c . Outcomes i . Amount of revenue that was estimated compared to actual receipts . ii . Implementation and ongoing costs to include technology infrastructure , staffing , and / or other costs . iii . Impact on local businesses and affected industries , if reported iv . Challenges in implementation etc . to include legal challenges and lessons learned . v . Interaction with existing sales tax laws and estimated or reported impact to sales tax revenue . d . Alternative measures implemented or proposed by other jurisdictions to generate revenue intended to offset the infrastructure impacts and increased public road usage resulting from the increase in retail deliveries .

California

2026-05-10