If Colorado’s governor signs a bill that’s now on his desk, the state will prohibit payment card networks from charging an interchange fee, or “swipe fee,” on the sales tax portion of a debit card or credit card transaction.
The bill, SB26-134, was passed by a 44 to 20 vote in the Colorado House, the Colorado House Democrats said in a Wednesday (May 6) press release.
Having passed the Colorado General Assembly, the bill now needs only the signature of Colorado Governor Jered Polis to become law, the National Federation of Independent Business said in a Wednesday press release.
SB26-134 applies to credit card companies with assets over $60 billion, and it requires businesses with more than 500 employees to use any savings from this bill to reduce prices for customers or increase wages or benefits for employees, according to the Colorado House Democrats’ release.
Businesses in Colorado paid $217 million in swipe fees on sales tax in 2024, per the release.
The sponsors of the bill in the Colorado House, Speaker Julie McCluskie and Majority Leader Monica Duran said in the release that currently, small businesses are paying thousands of dollars per year in swipe fees on sales tax that they are required to collect for state and local governments.
Advertisement: Scroll to Continue
“This simple bill will help businesses and workers thrive and create opportunities for small retailers to compete and succeed,” McCluskie said.
Duran said: “Our bill puts an end to swipe fees on sales tax to save Colorado businesses money and help local economies thrive.”
PYMNTS reported in April that the interchange fee bill’s supporters include the Colorado Restaurant Association and the National Restaurant Association, while its opponents include the Colorado Bankers Association.
The Colorado Bankers Association noted the House’s passage of SB26-134 in its list of priority items and said: “CBA is opposing this legislation for impact business, consumers and the economy.”
National Federation of Independent Business State Director Michael Smith said in a Wednesday press release: “Eliminating swipe fees on sales tax is a major priority for small business owners here in Colorado. For years, the growing cost of these fees has put signficant pressure on small businesses, many of whom are struggling to keep their doors open and the lights on.”
