Tennessee House Bill HB0615

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, relative to taxes and fees collected by merchants and sellers.

Impact

One of the significant impacts of HB0615 is the exclusion of state and local taxes or fees from the calculation of interchange fees charged on electronic payment transactions. This measure is expected to alleviate some of the financial burden from merchants by ensuring that taxes levied during transactions do not accrue additional fees. The types of taxes excluded from interchange fee calculations specifically include sales and use taxes, hotel occupancy taxes, alcoholic beverage taxes, and rental vehicle surcharges. Such exclusions aim to create a more equitable transactional environment for merchants using electronic payment systems.

Summary

House Bill 615 (HB0615) aims to amend the Tennessee Code Annotated, specifically Title 67, regarding taxes and fees collected by merchants and sellers. The bill introduces definitions for various terms such as credit card, debit card, electronic payment transactions, and interchange fees. These definitions establish a framework for how electronic transactions involving taxes and fees should be managed and reported. Furthermore, the bill seeks to clarify the financial obligations of payment card networks in relation to these transactions.

Contention

While HB0615 intends to enhance the legislative framework surrounding electronic payment transactions, it may also lead to contention regarding its enforcement and implementation. Concerns could arise about how well merchants can comply with the requirements of capturing and correctly reporting tax amounts at the point of sale. Additionally, the provision to deduct or rebate interchange fees based on taxes collected may meet with practical challenges and potential disputes, especially between merchants and payment card networks. Critics may argue that this bill could complicate transaction processes and may require additional administrative demands on sellers to comply with new regulations.