SB 370

This bill requires t he amount of a state or local tax or fee that is calculated as a percentage of an electronic payment transaction amount and listed separately on the payment invoice or other demand for payment, or the amount of a tax imposed under the Petroleum Products and Alternative Fuels Tax Law , to be excluded from the amount on which an interchange fee is charged for that electronic payment transaction. Such taxes and fees include, but are not limited to , (i) s ales and use taxes , ( ii ) h otel occupancy taxes and relate d taxes, ( iii ) a lcoholic beverage taxes , and ( iv ) r ental vehicle surcharge taxes. DEDUCTIONS OR REBATES REQUIRED This bill requires a payment card network to either (i) d educt the amount of a tax imposed from the calculation of interchange fees specific to each form or type of electronic payment transaction at the time of settlement; or (ii) r ebate an amount of interchange fee proportionate to the amount attributable to the tax or fee. A deduction or rebate must occur at the time of settlement when the merchant or seller is able to capture and transmit tax or fee amounts relevant to the sale at the time of sale as p art of the transaction finalization. If a merchant or seller is unable to capture and transmit tax or fee amounts relevant to the sale at the time of sale, then the payment card network must accept proof of tax or fee amounts collected on sales subject to an interchange fee upon the submission of sales data by the merchant or seller and promptly credit the merchant or seller's settlement account. VIOLATIONS – PENALTIES This bill provides that a payment card network that violates this bill is subject to a civil penalty of not more than $1,000 per violation, payable to the plaintiff, and must refund the surcharge to each merchant or seller.