Enacting the consumer inflation reduction and tax fairness act and exempting the portion of a credit card transaction constituting a tax or gratuity from assessment of the fee charged by the card issuer.

HB 2089 exempts the tax and gratuity portions of credit card transactions from processing fees charged by card issuers. This directly affects merchants (who collect sales tax or tips) and cardholders (who pay taxes/tips), as payment networks must now exclude these amounts when calculating fees for electronic transactions. The bill requires card issuers to adjust fee calculations to exclude tax and gratuity components, ensuring merchants aren't charged fees on amounts they pass through to government or employees. It implements this change through the "Consumer Inflation Reduction and Tax Fairness Act," which defines key terms like "tax" (sales/use/occupation tax) and "gratuity" (voluntary tip) for enforcement.