Iowa SSB1229 excludes certain taxes from interchange fees at points of sale.

Iowa SSB1229 mandates that payment card networks exclude specific taxes from interchange fees at points of sale. The bill defines "tax" to include sales and use taxes, hotel and motel taxes, local option taxes, automobile taxes, equipment taxes, water service taxes, excise taxes on fuel, and cigarette and tobacco taxes. Payment card networks must either deduct the tax amount from the interchange fee at the time of settlement or rebate the tax amount if the seller cannot capture and transmit the tax amount at the time of sale.

Iowa SSB1229 excludes certain taxes from interchange fees at points of sale.

Iowa SSB1229 mandates that payment card networks exclude specific taxes from interchange fees at points of sale. The bill defines "tax" to include sales and use taxes, hotel and motel taxes, local option taxes, automobile taxes, equipment taxes, water service taxes, excise taxes on fuel, and cigarette and tobacco taxes. Payment card networks must either deduct the tax amount from the interchange fee at the time of settlement or rebate the tax amount if the seller cannot capture and transmit the tax amount at the time of sale.