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B 2-38

AN ACT TO ADD A NEW §22439 OF CHAPTER 22, TITLE 5 GUAM CODE ANNOTATED, RELATIVE TO PROHIBITING THE GOVERNMENT OF GUAM FROM PASSING ON FEES CHARGED BY CREDIT CARD PROCESSORS TO COLLECT PAYMENT OF TAXES OR USE GOVERNMENT OF GUAM SERVICES.

38th Guam Legislature

Guam bill prohibits government from charging citizens credit card processing fees for tax and service payments, requiring government to absorb the costs instead.

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WeVote Research Nonpartisan
Bill Summary · B 2-38

Legislative bill overview

This bill would prohibit the Government of Guam from charging taxpayers and service users the credit card processing fees that merchants typically incur when accepting card payments. Instead of passing these fees to customers, the government would absorb the cost of processing credit card transactions for tax payments and government services.

Why is this important

Currently, when individuals pay taxes or government fees by credit card, they often face surcharges of 2-3% to cover processor fees—increasing the total amount owed. This bill would eliminate that burden, making government payments cheaper for residents and potentially increasing payment convenience. However, it shifts the financial cost entirely to the government budget.

Potential points of contention

  • Budget impact: The government must absorb processor fees (typically 2-3% of all card transactions), creating an ongoing fiscal obligation with uncertain annual costs
  • Equity concerns: The policy may benefit higher-income residents who pay larger taxes via credit card while general taxpayers fund the subsidy through other revenues
  • Alternative payment fairness: The bill doesn't address whether cash, check, or electronic bank transfer payers should face different treatment, potentially creating inconsistent policy
  • Implementation scope: Unclear whether all government services or only tax collection are covered, and how this applies to existing payment agreements

Compiled from official sources — confirm details with the bill’s official record.

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