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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2181 By: Johns
AS INTRODUCED
An Act relating to revenue and taxation; defining
terms; requiring calculation for credit and debit
card service fees to exclude state and local taxes;
providing process for collection of service fee s by
payment card network ; creating civil penalty for
violation; providing for codification; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 296 of Title 68, unless there is
created a duplication in numbering, reads as follows:
A. For purposes of this section:
1. "Credit card" means any card, plate, coupon book, or other
credit device existing for the purpose of obtaining money, property,
labor, or services on credit;
2. "Debit card" shall:
a. mean any card, or other payment code or device, issued
or approved for use through a paymen t card network to
debit an asset account, regardless of the purpose for
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which the account is established, whether
authorization is based on signature, personal
identification number, or other means,
b. include a general-use prepaid card, as defined in 15
U.S.C., Section 1693l-1(a)(2)(A), and
c. not include paper checks;
3. "Electronic payment transaction " means a transaction in
which a person uses a debit card, credit card, or other payment code
or device, issued or approved through a payment card network to
debit a deposit account or use a line of credit, whether
authorization is based on a signature, personal identification
number, or other means;
4. "Interchange fee" means a fee established, charged, or
received by a payment card network for the purpose of compensating
the issuer for its involvement in an electronic payment transaction;
5. "Issuer" means a person issuing a debit card or credit card,
or the issuer's agent;
6. "Payment card network " means an entity that:
a. directly, or through licensed members, processors, or
agents, provides the proprietary services,
infrastructure, and software that routes information
and data to conduct debit card or credit card
transaction authoriza tion, clearance, and settlement,
and
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b. a merchant or seller uses in order to accept as a form
of payment a brand of debit card, credit card, or
other device that may be used to carry out d ebit or
credit transactions;
7. "Service fee" means a fee established, charged, or received
by a payment card network for the purpose o f compensating the issuer
for its involvement in an electronic payment transaction; and
8. "Settlement" means the transfer of funds from a customer 's
account to a seller or merchant upon electronic submission of
finalized sales transactions to the payment card network.
B. The amount of any state or local tax or fee that is
calculated as a percentage of an electronic payment transaction
amount and listed separately on the payment invoice or other demand
for payment, or the amount of any taxes imposed under Title 68 of
the Oklahoma Statutes , must be excluded from the amount on which a
service fee is charged for that electronic payment transaction.
C. It shall be unlawful to alter or manipulate the computation
and imposition of interchange fees by increasing the rate or amount
of fee applicable to or imposed upon that portion of an electronic
payment transaction not attributable to a state or local tax or fee
to circumvent the effect of subsection B of this section.
D. A payment card network shall either ded uct the amount of any
tax or fee imposed as described in subsection B of this section from
the calculation of interchange fees specific to each form or type of
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electronic payment transaction at the time of settlement or shall
rebate an amount of interchang e fee proportionate to the amount
attributable to the tax or fee. The deduction or rebate shall occur
at the time of settlement when the merchant or seller is able to
capture and transmit tax or fee amounts relevant to the sale at the
time of sale as part of the transaction finalization. If the
merchant or seller is unable to capture and transmit tax or fee
amounts relevant to the sale at the time of sale, the payment card
network shall accept proof of tax or fee amounts collected on sales
subject to an interchange fee upon the submission of sales data by
the seller or merchant and shall promptly credit the merchant 's or
seller's settlement account.
E. A payment card network that violates this section is subject
to a civil penalty of not more than O ne Thousand Dollars ($1,000.00)
per violation, payable to the plaintiff, and shall refund the
surcharge to each merchant or seller.
F. This section is effective November 1, 2021, and shall apply
to electronic payment transactions processed on or after that dat e.
SECTION 2. This act shall become effective November 1, 2021.
58-1-6410 AQH 01/15/21