MS HB735

Establishes the "Retailer Tax Fairness Act" to provide tax credits to merchants and sellers who collect state and local taxes through electronic payment transactions.

Defines key terms including credit cards, debit cards, electronic payment transactions, interchange fees, payment card networks, and settlement to establish the scope of the law.

Grants merchants and sellers a credit against state and local taxes equal to 2.5% of the state and local taxes collected through electronic payment transactions where an interchange fee is charged.

Specifies that state taxes covered include sales and use taxes under Chapter 65, Title 27, and taxes under sections 27-55-11, 27-55-519, 27-59-11, 49-17-407, and 65-33-47.

Takes effect July 1, 2023 (note: the bill contains a contradictory repeal date of June 30, 2023).