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ID S1055

Bill

Official Source

Status

Introduced

2/5/2025

Primary Sponsor

Commerce and Human Resources Committee

Click for details

Origin

Senate

2025 Regular Session

AI Summary

  • Prohibits payment card networks from charging interchange fees (swipe fees) on the tax or gratuity portion of electronic payment transactions when merchants separately itemize these amounts on invoices
  • Applies to sales and use taxes, hotel/motel taxes, fuels taxes, and cigarette/tobacco taxes, as well as percentage-based gratuities
  • Requires payment card networks to either deduct tax/gratuity amounts at settlement or rebate the proportionate interchange fee within 30 days of receiving documentation
  • Merchants may submit tax and gratuity documentation up to 180 days after a transaction if unable to capture amounts at the time of sale
  • Violators face a civil penalty of $1,000 per transaction and must refund the interchange fees charged on tax/gratuity amounts; effective January 1, 2026

Legislative Description

Adds to existing law to establish provisions regarding electronic payment transaction interchange fees.

ELECTRONIC PAYMENT TRANSACTIONS

Last Action

Reported Printed; referred to Commerce & Human Resources

2/6/2025

Committee Referrals

Commerce and Human Resources2/6/2025
Judiciary and Rules2/5/2025

Full Bill Text

No bill text available