Oklahoma House Bill HB2181

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Revenue and taxation; credit and debit card service fees; effective date.

Impact

If enacted, HB2181 modifies how service fees are applied in the context of credit and debit card transactions. By mandating the exclusion of state and local taxes from the service fee calculations, the bill seeks to standardize the process across payment card networks. This change is expected to have a significant impact on merchants who accept electronic payments, as they would no longer bear the burden of higher service fees attributed to taxes, which could enhance their profit margins or reduce costs for consumers.

Summary

House Bill 2181 introduces provisions regarding revenue and taxation specifically focusing on electronic payment transactions via credit and debit cards. The bill stipulates that any state or local tax will be excluded from the computation of service fees applied to these electronic payment transactions. This aims to ensure that consumers are not charged additional fees based on the tax component of their payments, thereby reducing the financial burden associated with transactions for both sellers and consumers.

Contention

Notably, discussions surrounding this bill may arise regarding its effects on payment card networks and their pricing structures. Critics could argue that circumventing traditional cost structures may lead to a decrease in services provided by these payment networks or may push fees into different areas not specified by the bill. Additionally, the bill introduces a civil penalty for any violations, which might lead to further debate on the enforceability of these new provisions and the potential for legal disputes arising from misunderstandings of the new law.