Pennsylvania House Considers Eliminating Swipe Fees on Sales Tax

The bill could come to a floor vote on June 24.

June 14, 2024

The Pennsylvania House Finance Committee moved forward with a bill to ban credit and debit swipe fees from being charged on sales tax, reported PennLive.

The bill cleared the committee Wednesday on a party-line vote, with the Democratic majority in favor and Republicans saying they weren’t given bill text until this week and didn’t have sufficient time to evaluate it,” PennLive wrote.

The bill’s prime sponsor, Rep. Greg Scott, D-Montgomery County, said, “This legislation does not eliminate interchange fees, it reduces it—minimally. I’m looking to provide relief to some of these small businesses on the interchange fees that they pay.”

Committee chairman Steve Samuelson, D-Northampton County, stated that legislators have received steady complaints from businesses that they “pay swipe fees on funds that we do not keep,” PennLive reported.

Last year, Sheetz representatives testified at a hearing that “the company paid $78.2 million in card fees for its Pennsylvania stores in the most recent fiscal year. Of this, $1.3 million were fees on the sales tax piece of the transactions—fees that would be stricken under Scott’s legislation,” PennLive wrote.

The bill has been referred to the House Rules Committee and could come to a floor vote after the chamber returns to session on June 24.

In May, the Illinois State Legislature passed the Interchange Fee Prohibition Act, which eliminated swipe fees on sales taxes, state excise taxes and gratuities—a first of its kind rule. Read more about NACS’s coverage of the bill here.