TAX/SALES & USE: Urges and requests the Department of Revenue to study the benefit that a dealer receives from vendor's compensation as compared to the costs a dealer incurs for paying certain interchange fees

2026 Regular Session Introduced by John Wyble

Louisiana would study and report whether dealer benefits from vendor’s compensation offset the costs of interchange fees on taxes collected, by Jan 31, 2027.

Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.

Summary of Bill HR 389 (2026, Louisiana)

Purpose and intent

The bill is a House Resolution urging and requesting the Louisiana Department of Revenue to study and report on the financial impact of vendor’s compensation for taxes, in comparison with the costs dealers incur due to interchange fees on payment card transactions.

Key provisions and changes

The Department of Revenue is asked to conduct a study that:

Evaluates the benefit dealers receive from vendor’s compensation for state and local sales and use taxes and excise taxes.
Compares this benefit to the costs dealers incur from paying interchange fees assessed on the tax portion of a sale.
Produces a report with findings to be submitted to the House Committee on Ways and Means by January 31, 2027.

The report should include:

A short history of vendor’s compensation: why it was created and how it has evolved.
Best available estimates of:
The amount of state and local sales and use taxes and excise taxes collected in transactions involving payment cards.
The best available estimate of interchange fees attributable to taxes collected and remitted by dealers.
The amount of vendor’s compensation dealers receive under current law during the same period.
A comparison showing the extent to which vendor’s compensation offsets costs associated with interchange fees.

The resolution directs the report to include the information above and to transmit a copy to the Secretary of the Department of Revenue.

Who or what would be affected

Dealers who collect sales and use taxes and various excise taxes and remit them to state/local authorities, particularly those engaged in transactions involving payment cards (credit/debit/check cards).

The Louisiana Department of Revenue as the entity conducting the study and preparing the report.

The Louisiana House Committee on Ways and Means as the recipient of the final findings.

Procedural and timeline aspects

Type: House Resolution (non-binding) urging an agency to study and report.

Deadline for the required report: January 31, 2027.

Initial action: bill text notes the resolution was read by title on May 29, 2026.

Sponsors: Primary sponsor is Rep. Wyble, with a co-sponsor listed as Rep. John Wyble.

Practical implications

The resolution does not enact new law or change current vendor’s compensation or interchange fee rules directly.

If the study identifies significant disparities or unintended costs, it could inform future legislative or administrative actions related to vendor’s compensation, interchange fees, or tax administration policies in Louisiana.

Overall, HR 389 aims to illuminate the financial balance between vendor’s compensation benefits to dealers and the practical costs dealers incur from interchange fees on tax components of sales, guiding policymakers with a comprehensive comparative analysis by early 2027.