SS/SCS/SB 1534 - This act modifies provisions relating to the exclusion of certain transactions from sales tax. CREDIT CARD PROCESSING FEES This act excludes credit card and debit card processing fees from the definition of "gross receipts" for the purpose of imposing sales taxes. Such processing fees shall not exceed three percent of the purchase price or the merchant discount fee, whichever is less. Any business that charges a processing fee that is excluded from gross receipts shall provide notice to a purchaser of such charges, as described in the act. (Section 144.010) This provision is substantially similar to a provision in SCS/HB 1707 (2026). FOOD SALES TAX EXEMPTION Current law taxes retail sales of food, as defined in current law, at a rate of one percent. This act provides that retail sales of food shall be exempt from state sales taxes. (Section 144.014) This provision is identical to SB 688 (2025), SB 734 (2025), and SCS/SB 161 (2023), and to a provision in SB 57 (2025) and SCS/HCS/HB 154 (2023), and is substantially similar to SB 1656 (2026), HB 2079 (2026), HB 2253 (2026), HB 2568 (2026), SB 659 (2025), HB 345 (2025), HB 432 (2025), HB 872 (2025), HB 1587 (2025), HB 1418 (2024), HB 1464 (2024), HB 2174 (2024), HB 260 (2023), HB 452 (2023), HB 591 (2023), HB 896 (2023), HCS#2/HB 1992 (2022), HB 1817 (2022), and HB 2530 (2022), and to a provision in HB 1029 (2025), HB 2815 (2024), HB 2887 (2024), HB 377 (2023), HCS/HBs 876, 771, 676 & 551 (2023), HB 1136 (2023), HB 1779 (2022), and HB 2249 (2022). The act also provides that, of the 4% state sales tax rate, the revenue derived from a rate of 0.2% shall be deposited in the School District Trust Fund. (Section 144.020) These provisions are identical to SCS/SBs 1017 & 1239 (2026). JOSH NORBERG

2026 Regular Session Introduced by Joe Nicola

Missouri bill excludes card processing fees from sales tax gross receipts, reducing taxes for card-accepting businesses but potentially lowering state revenue.

Formal Calendar S Bills for Third Reading

Legislative bill overview

SB 1534 would exclude credit card and debit card processing fees from Missouri's sales tax calculation on gross receipts. This means businesses would not pay sales tax on the fees they incur when customers pay with credit or debit cards, effectively reducing the taxable base for businesses that accept card payments.

Why is this important

Missouri currently taxes gross receipts, which includes card processing fees, creating a "tax on a tax" that some argue inflates the effective tax burden on retailers. This bill would provide tax relief to businesses that heavily rely on card payments, potentially lowering operational costs. However, it could reduce state tax revenue unless offset by other means.

Potential points of contention

Revenue impact: The state would lose tax revenue from excluding these fees, raising questions about budget implications and whether alternative revenue sources are identified

Fairness concerns: Businesses that primarily use cash wouldn't benefit equally, potentially creating competitive advantages for card-heavy retailers

Implementation complexity: Defining and tracking processing fees separately for tax purposes could create administrative burdens for businesses and tax authorities