An act relating to credit card fees on taxes and gratuities

2025-2026 Regular Session Introduced by Matt Birong and 18 co-sponsors

H.317 aims to prevent credit card processing fees from being added to tax bases or tips, ensuring pricing transparency for consumers.

Read first time and referred to the Committee on Commerce and Economic Development

Summary of Bill H.317 (Session 2025-2026) — Vermont

Purpose and Intent

H.317 seeks to regulate how credit card processing fees are handled for taxes and gratuities. The bill generally aims to ensure that consumers are not unknowingly bearing the cost of merchant credit card fees through taxes or tips, and to promote transparency in pricing related to taxable transactions.

Key Provisions and Changes

Ensuring Credit Card Fees Are Not Taxed

The bill proposes provisions to prevent merchants from passing their credit card processing fees onto customers by increasing the stated tax base or by layering fees onto the amount subject to tax.

Gratuities and Tip Transparency

The measure addresses how gratuities are calculated and collected when customers pay by credit card, with an emphasis on ensuring that tips are not inappropriately used to cover processing costs.

Consumer Protection and Disclosure

The bill may require clearer disclosures at the point of sale regarding any credit card surcharge or related fees, and delineate permissible versus prohibited practices.

Administrative and Enforcement Provisions

The measure would establish the enforcement framework, including which agency administers the rules, how violations are handled, and potential penalties for non-compliance.

Clarifications for Tax Jurisdiction

The bill may clarify which taxes (e.g., sales, use taxes) are affected by this regulation and how exemptions or rebates apply to credit card fees in taxable transactions.

Who Is Affected

Businesses that accept credit card payments for goods and services, particularly retailers, restaurants, and service providers that handle tips and gratuities.

Consumers who pay with credit cards, as the bill targets how fees and gratuities are reflected in final pricing and taxes.

Tax administrators and enforcement agencies responsible for sales and use tax compliance.

Procedural and Timeline Aspects

Introduction and Referral

First reading occurred on February 25, 2025, and the bill was referred to the Committee on Commerce and Economic Development.

Next Steps (typical)

The committee would hold hearings, solicit testimony from stakeholders, and may amend the bill before advancing to the floor for a full chamber vote.
If passed by one or both chambers, the bill would move to the other chamber and eventually to the governor for signature or veto, subject to the legislative calendar.

Additional Context

Co-sponsors include a broad group of legislators, indicating cross-party or bipartisan interest in the topic of credit card fee practices and consumer pricing transparency.

Specific numeric thresholds, dollar amounts, or detailed enforcement mechanisms are not provided in the available action history; the full text would specify any defined penalties, fee limits, or effective dates.

If you’d like, I can pull the full text and provide a line-by-line breakdown of provisions, or compare H.317 to existing Vermont law to highlight exact changes.