Ohio requires delivery network fees to be taxed
Ohio House Bill 315 changed how delivery charges are taxed in the state. Effective April 3, 2025, delivery network service fees are taxable, even when the underlying items being delivered are not. Sellers and platforms using third-party delivery providers should confirm their tax logic reflects this change.
Written by Alex Lamachenka
Head of DemandGen
Published
What changed
Under prior Ohio rules, delivery charges could be excluded or apportioned depending on:
- Whether the seller imposed the charge
- Whether the underlying items were taxable
- Whether delivery was separately stated
HB 315 changes that framework for delivery network companies.
Delivery charges imposed by a delivery network company are now taxable, including charges associated with otherwise nontaxable items such as food.
This removes prior allocation methods that some merchants used when selling mixed carts of taxable and nontaxable goods.
What is a delivery network company
A delivery network company generally refers to a third-party platform that facilitates delivery of goods from merchants to customers, often through app-based systems.
This includes businesses that:
- Arrange delivery between merchants and customers
- Collect or facilitate payment
- Impose delivery-related service charges
Why this matters for sellers
This is a taxability logic change, not a rate increase.
If your Ohio system previously:
- Allocated delivery fees between taxable and exempt items
- Excluded grocery delivery from tax
- Relied on separate statement treatment to avoid taxation
That logic may now be incorrect for delivery network transactions.
Mixed sellers, restaurants, grocery retailers, and merchants integrating third-party delivery APIs face the highest risk of under-collection if systems were not updated after April 3, 2025.
Who this affects
- Ohio merchants using delivery network companies
- Restaurants and grocery sellers with mixed taxable sales
- Marketplace facilitators involved in delivery transactions
- Finance and engineering teams managing tax allocation logic
Next steps
- Review: Identify Ohio transactions involving delivery network companies.
- Calculation: Confirm delivery fees are treated as taxable where required.
- Reporting: Ensure returns reflect delivery charges appropriately under current Ohio law.
Official Source:
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