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Bill

Bill

SF 1977

Certain businesses credit card transaction fees exemption provision and appropriation

2025-2026 Regular Session

Minnesota bill would exempt certain businesses from credit card transaction fees using state appropriated funds to cover costs.

Referred to Taxes
#corporationsandpartnerships #revenuedepartment #taxation-salesanduse
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Bill Summary · SF 1977

Legislative bill overview

SF 1977 would exempt certain businesses from paying credit card transaction fees or provide them with a credit/reimbursement mechanism for such fees. The bill also includes an appropriation, meaning it allocates state funds to implement or support this exemption provision. The specific businesses targeted and fee structure remain to be detailed in the full bill text.

Why is this important

Credit card processing fees represent a significant operational cost for many small and mid-sized businesses, particularly in retail, food service, and hospitality sectors. This exemption could reduce operating costs for qualifying businesses, potentially affecting pricing, profitability, and competitiveness. However, it also raises questions about state budget priorities and which businesses qualify for preferential treatment.

Potential points of contention

  • Defining "certain businesses": The bill's scope is unclear—will exemptions apply only to small businesses, specific industries, nonprofits, or all businesses? This definition is critical and likely contentious.
  • Funding mechanism and fiscal impact: The appropriation amount and whether funds come from general revenue or a dedicated source will determine the budget impact and whether other programs face cuts.
  • Market distortion concerns: Exempting some businesses but not competitors could create unequal competitive conditions and raise fairness questions among business groups.

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

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