Bill
Bill > SB774
summary
Introduced
01/22/2026
01/22/2026
In Committee
01/22/2026
01/22/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Financial institutions; processing fee on taxes prohibited; civil penalty. Prohibits any payment card network from imposing or receiving any processing fee on the portion of any transaction comprising sales and use tax on any electronic payment transaction, defined in the bill as any transaction in which a person uses a debit card, credit card, or other payment code or device issued or approved through a payment card network to debit a deposit account or use a line of credit, whether authorization is based on a signature, personal identification number, or other means. The bill imposes a civil penalty of $1,000 per violation and requires any such fees to be refunded to the merchant. Such penalties are to be collected by the State Corporation Commission and deposited into the state treasury. The bill has a delayed effective date of July 1, 2028.
AI Summary
This bill prohibits payment card networks, which are entities that facilitate electronic payment transactions using debit or credit cards, from charging or collecting any processing fee, a fee meant to compensate the card issuer, on the portion of a transaction that represents sales and use taxes. An electronic payment transaction is defined as any use of a debit card, credit card, or similar device to make a payment. If a payment card network violates this rule, it will face a civil penalty of $1,000 for each violation and must refund any improperly charged fees to the merchant. The State Corporation Commission will collect these penalties and deposit them into the state treasury, with the law set to take effect on July 1, 2028.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Passed by indefinitely in Commerce and Labor with letter (13-Y 0-N) (on 02/02/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/SB774 |
| Fiscal Note/Analysis - Fiscal Impact Statement from State Corporation Commission (SB774) | https://lis.blob.core.windows.net/files/1105901.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB774/text/SB774 |
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