As state and local governments look for revenue to close budget gaps and fund services, some have targeted specific industries and business activities. Among the affected industries is retail, particularly as some policymakers focus on e-commerce, delivery, and last-mile logistics. To make certain measures easier to enact, some states and localities have labeled new charges as “fees,” rather than taxes, because fees may avoid some of the procedural and political hurdles that apply to taxes. For example, in some jurisdictions taxes may be subject to supermajority vote requirements, fees often are not. But retailers should not assume that a charge labeled as “fee” is immune to any such procedural requirements if the charge is really a tax.

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