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Senate committee sends RS 32,039 to print to exclude sales tax and gratuities from card interchange calculation

2255330 · February 4, 2025
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Summary

The Senate Commerce and Human Resources Committee voted to send RS 32,039 to print after a presentation from Senator Mark Harris that the bill would exclude sales taxes and gratuities from the calculation of credit and debit card interchange fees.

The Senate Commerce and Human Resources Committee voted to send RS 32,039 to print after a brief presentation and no substantive debate.

Senator Mark Harris (District 35) introduced the request statute, saying the bill would change how interchange fees are calculated by excluding state and local sales taxes and gratuities from the amount subject to the fee. "This is a little bit of a change in the fact that it adds gratuities to the issue," Harris said. He told the committee the bill instructs card networks to either deduct the tax amount or rebate it to the interchange fee proportionately and noted the measure allows networks an opt‑out on page 2, subsection 3.

Why it matters: retailers currently collect sales tax at the point of sale and those tax amounts are included in the transaction amount that carries a card interchange fee. Proponents say excluding taxes and tips would lower costs passed through to merchants; the committee did not hear opposing testimony during this session.

Committee action: Senator Guthrie moved that RS 32,039 be sent to print; Senator Lakey seconded. The committee approved the motion by voice vote; a roll‑call tally was not recorded in the transcript.

Next steps: The measure will be printed for a formal hearing at a later date, where additional testimony and technical details would be considered.