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KS HB2089
Bill
Status
1/23/2025
Primary Sponsor
Commerce, Labor and Economic Development
Click for details
AI Summary
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Prohibits credit card issuers, payment card networks, acquirer banks, and processors from charging interchange fees on the tax or gratuity portions of electronic payment transactions when merchants report those amounts during authorization or settlement
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Merchants who fail to transmit tax/gratuity data at the time of transaction may submit documentation within 180 days to receive a refund of interchange fees charged on those amounts, with issuers required to credit merchants within 30 days
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Makes it unlawful for payment card entities to circumvent the law by raising interchange fee rates on the non-tax portion of transactions, with civil penalties of up to $1,000 per violation
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Authorizes enforcement through individual merchant lawsuits or actions by the attorney general or county/district attorneys, including injunctions and mandatory refunds of unlawfully charged fees
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Applies to Kansas state and local sales, use, and excise taxes but excludes income taxes, bank privilege taxes, and insurance premiums taxes
Legislative Description
Enacting the consumer inflation reduction and tax fairness act and exempting the portion of a credit card transaction constituting a tax or gratuity from assessment of the fee charged by the card issuer.
Last Action
House Referred to Committee on Financial Institutions and Pensions
1/23/2025