credit cards; taxes; fees
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Committee on Energy Utilities and Technology |
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Committee on Ways and Means |
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Caucus and COW |
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As Passed the House |
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SB 1240 exempts the Department of Revenue from deducting discount or convenience fees from credit card or charge card transactions for any payment due the state. This means that the General Fund will receive one hundred per cent of any credit/charge card transaction with the discount and or convenience fee borne by the credit card holder.
Laws 2000, chapter 311 changed state law to make it possible for state agencies to accept credit cards or charge cards for monies due the state. The law provides that agencies that accept credit cards or charge cards must deduct any applicable discount or convenience fees associated with the transaction before depositing the net amount in the appropriate state fund.
Generally, discount fee refers to a fee calculated and charged by the card
issuer pursuant to a merchant agreement.
The State Treasurer negotiates the discount rate, which varies between
1.7 per cent and 2.25 per cent, with the various credit card issuers. Convenience fee refers to an additional
fee imposed but that would not be charged if the transaction was completed in
person. This currently ranges from
approximately two to six dollars.