Missouri businesses pay sales tax on the credit and debit card fees they charge their customers. A Senate bill would exempt the sales tax they must pay.
The sponsor, State Sen. Joe Nicola, R-Grain Valley, told Missourinet that SB 1534 is designed to provide a bit of relief to business owners in Missouri.
“This is a fee that the business actually charges. A lot of businesses are charging fees now that use a credit card just to help cover their processing fees,” Nicola said. “They have to include that fee as part of revenue, so they have to pay sales tax on it.”
He said customers would also benefit because businesses would have less incentive to pass along the cost of credit and debit card fees.
“It’s almost like a double tax that they’re being taxed on,” Nicola said. “Anytime your cost of business goes up, it’s got to be passed along to the customers. And we want to do whatever we can to keep prices down, keep them low for people.”
The Missouri Senate Economic and Workforce Development Committee has voted in favor of the bill. The Senate could debate the bill soon.
Copyright © 2026 · Missourinet