Tennessee SB0370 amends tax laws to exclude certain taxes from interchange fees for electronic payment transactions.

Tennessee SB0370 amends the state's tax laws to exclude certain taxes from the calculation of interchange fees for electronic payment transactions. Specifically, sales and use taxes, hotel occupancy taxes, alcoholic beverage taxes, and rental vehicle surcharge taxes must be excluded from the amount on which an interchange fee is charged. Payment card networks must either deduct these taxes at the time of settlement or rebate the interchange fee proportionate to the tax amount.

Tennessee SB0370 amends tax laws to exclude certain taxes from interchange fees for electronic payment transactions.

Tennessee SB0370 amends the state's tax laws to exclude certain taxes from the calculation of interchange fees for electronic payment transactions. Specifically, sales and use taxes, hotel occupancy taxes, alcoholic beverage taxes, and rental vehicle surcharge taxes must be excluded from the amount on which an interchange fee is charged. Payment card networks must either deduct these taxes at the time of settlement or rebate the interchange fee proportionate to the tax amount.