Bill > SB01460

This bill addresses interchange fees charged during electronic payment transactions by requiring payment card networks to exclude sales and use taxes from the base amount used to calculate these fees. The bill defines several key terms, including "payment card" (credit or debit cards), "electronic payment transaction" (a purchase using a payment card), and "interchange fee" (the fee charged to retailers for processing the transaction). Specifically, payment card networks must either deduct the tax amount from interchange fee calculations at the time of settlement or provide a proportional rebate of the interchange fee. If retailers can provide the tax information during the transaction, the adjustment will occur immediately; if not, retailers can submit sales data later to receive a credit. The bill provides enforcement mechanisms, allowing the Attorney General to bring legal action against payment card networks that violate these provisions, with potential civil penalties of up to $1,000 per violation and requiring refunds to retailers. The legislation will take effect on October 1, 2026, and will apply to sales occurring on or after that date, ultimately aiming to reduce the financial burden on retailers by preventing them from paying interchange fees on tax amounts.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01460&which_year=2025