Brennan Duckett advocates for SB 1460 to eliminate swipe fees on sales taxes in Connecticut

The Finance Revenue & Bonding Committee of the Connecticut State Legislature held a public hearing on March 14, 2025, focusing on significant legislative proposals impacting the state's economy. A key topic of discussion was Senate Bill 1460, which aims to exempt sales and use taxes from interchange fees charged by payment card networks.

Brennan Duckett, the director of tech and innovation policy at the National Restaurant Association, testified in support of the bill. He highlighted the growing burden of swipe fees, which are predominantly controlled by Visa and Mastercard, affecting restaurant operators across the state. Duckett noted that these fees, which can range from 2% to 4% per transaction, are a major expense for restaurants and contribute to inflationary pressures. He emphasized that restaurants, as significant collectors of state and local taxes, are unfairly penalized by having to pay swipe fees on the taxes they collect, costing the industry nearly $10 billion annually in the U.S.

Duckett argued that passing SB 1460 would save Connecticut's restaurant industry approximately $14 million each year in swipe fees. He pointed out that in 2023 alone, businesses and consumers in Connecticut paid over $110 million in swipe fees on sales taxes. He asserted that these funds could be better utilized within the state to stimulate local economic activity rather than being funneled to global card networks.

The hearing also addressed potential opposition to the bill, with Duckett dismissing concerns as distractions aimed at preserving the current profitable status quo for card networks. He assured committee members that the legislation is feasible and would not harm small businesses or disrupt existing rewards programs.

As the committee continues to evaluate the implications of SB 1460, the discussions underscore the ongoing challenges faced by local businesses in managing operational costs while fulfilling their tax obligations. The outcome of this bill could have significant ramifications for Connecticut's restaurant sector and its broader economic landscape.