PennDOT eyes a plan to slap a tax on packages delivered in the state

The Pennsylvania Department of Transportation (PennDOT) is considering a plan to generate revenue by taxing packages that are delivered in the state.

A proposal to be presented to Pennsylvania Governor Tom Wolf later this summer will recommend instituting a $0.25 tax on each package delivered by Amazon, UPS, and FedEx.

PennDOT estimates that the delivery tax could bring in $200 million to $250 million annually. The money would be used for transportation funding.

The package tax is being considered as a funding source after PennDOT reported an $8 billion deficit as gas tax revenue fell dramatically due to the pandemic.

Officials say that approximately 721.5 million packages were delivered in the state Pennsylvania in 2020.

The Pennsylvania Motor Truck Association (PMTA) issued a statement on the package tax:

“PMTA is aware of the proposal to establish a package delivery fee and will be watching for more details about what the fee may look like, including how it would be administered and collected. transportation funding and infrastructure support are vital to our economy, both in Pennsylvania and throughout the country, and we understand that it is a challenging issue to address. PMTA will continue to work on behalf of the trucking industry with the TROC and the general assembly as they explore alternatives. the most successful solutions for transportation funding will be predictable, have a low cost of collection, and treat all users fairly. if the proposed package delivery fee fits the bill, we could be supportive.”

Earlier this month, the Pennsylvania Turnpike Commission (PTC) announced a 5% toll increase as it continues to make a $450 million annual payment to PennDOT.  Starting next year, the PTC will only be required to pay PennDOT $50 million per year, with $400 million of funding to come from the Commonwealth’s Motor Vehicle Sales and Use Tax.