Bill
S 1055
Idaho S 1055 blocks interchange fees on tax and gratuity portions of card transactions, requiring networks to deduct or rebate those amounts; violators face penalties.
The materials provided include two different bills that share the identifier “S 1055” but arise from different jurisdictions and address different subjects. Below are concise, separate summaries for each, plus notes about conflicting metadata and recommended next steps.
Status: Introduced in Idaho Legislature; hearing scheduled (per documents) 06/17/2025. Effective date in bill: January 1, 2026.
Purpose
- Prevent interchange (“swipe”) fees from being charged on portions of card transactions that are state/local taxes or gratuities when those amounts are separately identified on the merchant’s invoice.
Key provisions
- Adds new Section 63-3643 to Idaho Code (Chapter 36, Title 63).
- Taxes and gratuities that are calculated as a percentage of the transaction and separately itemized (e.g., sales tax, hotel/motel tax, fuel tax, cigarette/tobacco taxes) must be excluded from the base used to calculate interchange fees.
- Payment card networks must either:
- deduct the tax/gratuity amounts from interchange-fee calculations at settlement, or
- rebate an amount of interchange fees proportional to the tax/gratuity portion.
- If merchants cannot transmit tax/gratuity at time of sale, they may submit documentation up to 180 days after the transaction; issuer must credit the merchant within 30 days after receiving documentation.
- No liability is created for payment card networks regarding accuracy of merchant-reported tax/gratuity amounts.
- If a merchant does not itemize tax/gratuity, interchange fees may be charged on the full amount.
- Prohibits altering interchange fee rates to circumvent the exclusion; imposes a civil penalty of $1,000 per electronic payment transaction for violators, and requires refund of interchange fees charged on tax/gratuity amounts.
Who is affected
- Merchants that accept electronic payments (retailers, restaurants, state-run stores).
- Issuers, acquirer banks, payment card networks, and processors.
- State/local governments could see small positive fiscal effects where taxes are collected on card sales (fiscal note cites potential savings to Idaho State Liquor Division).
Fiscal impact
- Proponent fiscal note: no negative impact on General Fund or local governments; may produce positive savings in some state accounts.
Timing and remedies
- Merchant documentation window: up to 180 days post-transaction.
- Issuer must credit merchant within 30 days after documentation submission.
- Law effective January 1, 2026 (per bill text).
Status: Filed in Massachusetts (Senate Docket No. 615 / Senate No. 1055); introduced January 14, 2025. (This appears to be a different S.1055 from the Idaho text.)
Purpose
- Modernize and clarify administration of the Commonwealth’s victim compensation laws; transfer administration to the Massachusetts Office for Victim Assistance and update statutory language.
Key provisions (selected)
- Repeals Section 11K of chapter 12.
- Amends chapters 258B and 258C to:
- Designate the Massachusetts Office for Victim Assistance (“agency”) to administer chapter 258B provisions on behalf of the victim and witness assistance board.
- Provide the executive director (appointed by the board) authority to promulgate rules/regulations under chapter 30A.
- Replace references to “Division” and “Department” with “agency”/“director”; change gendered pronouns to victim/claimant-neutral language.
- Require the director to notify claimants within 15 days of claims review, and issue payments in accordance with regulations.
- Allow agency to receive and transmit funds to the victim compensation fund and administrative funds; authorize staff appointments.
- Amend procedures around reviews, judicial notifications, and payment following court decisions (subject to appropriation).
Who is affected
- Victims and claimants seeking compensation under Massachusetts’ victim compensation statutes.
- Massachusetts Office for Victim Assistance, victim and witness assistance board, and Attorney General’s office (for legal representation/coordination).
- Courts involved in review and order of compensation payments.
Effective date
- Not specified in the excerpt provided.
Recommendation
- Confirm the jurisdiction (Idaho vs. Massachusetts) and which version of S 1055 you need summarized or tracked.
- If you want legislative tracking or an analysis focused on one version (Idaho’s interchange-fee bill or Massachusetts’ victim compensation overhaul), tell me which and I will produce a focused, jurisdiction-specific brief, amendment-by-amendment review, or a stakeholder impact analysis.
Compiled from official sources — confirm details with the bill’s official record.
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