Prohibits the imposition of an interchange fee on the tax amount of an electronic payment transaction

HB 1274 prevents merchants from being charged transaction fees on the tax portion of credit or debit card purchases. Merchants must provide the tax amount during checkout or within 180 days to avoid these fees, and can request refunds if incorrectly charged. The law also prohibits businesses from artificially increasing fees on non-tax parts of transactions to bypass this rule. Violations carry a $1,000 civil penalty per transaction. This directly affects merchants accepting card payments who collect state or local taxes.