St. Paul, MN
On Wednesday, February 26th MSSA President Chan Smith testified in the Senate Taxes Committee supporting S.F. 44, Sen. Ann Rest’s bill which would establish a vendor collection allowance. Any business collecting Minnesota sales taxes would be eligible for the allowance, and if approved, the legislation would go into effect on June 30, 2025. S.F. isn’t perfect, but it brings some relief to MSSA members paying credit card fees for collecting our state’s tax.
There is a stronger possibility a more robust piece of legislation may be introduced next session exempting retailers from paying credit card fees for collecting all the state tax. MSSA has been able to obtain legislative language, and the most recent bill introduced in Colorado through NACS. Currently there are eighteen other states that have introduced legislation similar to Illinois and Colorado better identifying the needs and wants of those retailers in those states.
Back in October 2024, The Illinois Bankers Association sued the State of Illinois for the motion for pre-enforcement injunctive relief from the Illinois Interchange Fee Prohibition Act (the “IFPA”). The judge ruled that credit card networks must comply with the Interchange Fee Prohibition Act, which limits swipe fees from being charged on the tax and tip portion of transactions.