D.C. adds 20-cent delivery fee as food taxes spread across U.S. cities

In its 2027 budget, the D.C. Council enacted a 20-cent charge on carrier-for-hire delivery firms, a move championed by councilmember Brianne Nadeau who claims the cost will be shouldered by large platforms and generate about $9 million each year. While presented as a modest fee, the policy joins a growing trend of food-related taxes that many states and municipalities are adopting, from general sales taxes on prepared meals to specific meal taxes in cities like Minneapolis, Chicago and Virginia Beach, according to a Tax Foundation analysis.

The article highlights that 13 of the nation’s 50 biggest cities impose extra meal taxes, and smaller locales such as Williamsburg, Richmond and even Mathews, Virginia have followed suit. Evidence from Williamsburg shows that a 30 percent meal-tax increase lifted tax revenue but coincided with a 1.5 percent drop in overall restaurant tax collections, suggesting possible revenue shortfalls. Voter surveys in Colorado and Minnesota reveal that a notable share of residents would order delivery less often because of such fees. The piece concludes that while officials tout these measures as revenue solutions, they may undermine the goal of keeping food affordable.