SB 1534: Modifies provisions relating to the exclusion of certain transactions from sales tax - Missouri

3/25/2026 - SA 2 to SS for SCS S offered & adopted (Washington)--(6578S03.03S) 3/25/2026 - Adopted → 3/25/2026 - SA 3 to SS for SCS S offered & adopted (Washington)--(6578S03.02S) 3/25/2026 - Adopted · 2 edits

MINOR

The amendment shifts the legislative reference from Page 2 to Page 7 and replaces a specific fee cap with a new requirement for businesses to publicly disclose credit card processing fees. This change ensures that merchants must clearly inform customers about potential fees before a transaction occurs, enhancing consumer transparency.

Scope change

The bill's scope now applies to any business charging credit or debit card processing fees that are excluded from gross receipts, requiring them to post specific notice language at the point of sale or on their website.

REQUIREMENT

Replaced a specific fee limit with a mandatory disclosure requirement, forcing businesses to post a notice stating that card payments are subject to a fee of up to three percent.

TECHNICAL

Updated the amendment reference from Page 2, Section 144.010, Line 51 to Page 7, Section 144.010, Line 204.

3/25/2026 - SA 1 to SS for SCS S offered & adopted (Lewis)--(6578S03.01S) 3/25/2026 - Adopted → 3/25/2026 - SA 2 to SS for SCS S offered & adopted (Washington)--(6578S03.03S) 3/25/2026 - Adopted · 3 edits

MINOR

The amendment shifts the bill's focus from a broad discussion on food tax exemptions to a specific rule limiting card processing fees. It adds a cap stating that these fees cannot exceed three percent of the purchase price or the merchant discount fee, whichever is lower. This change clarifies the financial limits on transaction costs for merchants and consumers.

Scope change

The scope narrowed from general tax provisions regarding food sales to a specific regulation on card processing fees.

REQUIREMENT

Added a new requirement capping card processing fees at three percent of the purchase price or merchant discount fee, whichever is less.

SCOPE

Removed extensive text regarding the definition of 'food' and exemptions for restaurants and vending machines.

Removed provisions related to the tax rate on food sales and the distribution of revenue to school district trust funds.

3/25/2026 - SS for SCS S offered (Nicola)--(6578S.03F) 3/25/2026 - Adopted, as amended → 3/25/2026 - SA 1 to SS for SCS S offered & adopted (Lewis)--(6578S03.01S) 3/25/2026 - Adopted · 4 edits

MODERATE

The bill was amended to change its primary focus from repealing a tax on card processing fees to establishing an exemption for the retail sale of food from state sales tax. This shift redefines the bill's purpose to protect food purchases from taxation while clarifying that local sales taxes may still apply.

Scope change

The bill's scope changed from a general repeal of card fee regulations to a specific exemption for food sales, with detailed definitions of what constitutes 'food' versus prepared restaurant meals.

SCOPE

The bill's purpose was changed from repealing card processing fee taxes to exempting the retail sale of food from state sales tax.

DEFINITION

New definitions were added to specify that 'food' includes items eligible for food stamps but excludes food sold by establishments where prepared food sales exceed 80% of total receipts.

REQUIREMENT

A new section was inserted to exempt all retail sales of food from the tax levied under the chapter, while explicitly stating this does not exempt food from local sales taxes.

ENFORCEMENT

Provisions specifically exempting credit card and debit card processing fees from tax were removed from the bill.

6578S.03P - Perfected → 3/25/2026 - SS for SCS S offered (Nicola)--(6578S.03F) 3/25/2026 - Adopted, as amended · 5 edits

MODERATE

The bill was significantly simplified to repeal only one tax code section (144.010) instead of three, and its purpose was narrowed from repealing multiple tax sections to enacting a single new section regarding card processing fees. The scope of the bill was reduced by removing definitions for admission, captive wildlife, instructional classes, livestock, and motor vehicle leasing companies, while adding a new definition for 'Person' and expanding the definition of 'Motor vehicle leasing company' to clarify permit requirements.

Scope change

The bill's scope was narrowed from repealing three tax sections to repealing only one, and the substantive content was reduced by removing several tax definitions while adding a new definition for 'Person'.

SCOPE

The repeal of sections 144.014 and 144.020 was removed, leaving only the repeal of section 144.010.

The bill's stated purpose was changed from repealing three sections to enacting one new section regarding the taxability of card processing fees.

DEFINITION

Definitions for 'Admission', 'Captive wildlife', 'Instructional class', 'Livestock', and the original 'Motor vehicle leasing company' were removed from the bill.

A new definition for 'Person' was added to include various entities like individuals, firms, and government agencies.

The definition of 'Motor vehicle leasing company' was expanded to clarify that not all trailer or vehicle renters need a permit, but those without permits cannot use optional tax provisions.

6578S.02C - Senate Committee Substitute → 6578S.03P - Perfected · 4 edits

MODERATE

The bill was perfected by adding a 'Perfected' status and updating the header to reflect Senator Nicola as the sponsor. Substantively, the bill's scope expanded from repealing one tax section to repealing three sections (144.010, 144.014, and 144.020) to create a broader exemption for specific transactions. A key new definition was added to exempt card processing fees up to 3% of the purchase price from sales tax, while the definitions for 'Motor vehicle leasing company' and 'Person' were modified with minor text adjustments.

Scope change

The bill's scope expanded from repealing a single tax section to repealing three sections, and a new specific exemption for card processing fees was introduced.

SCOPE

The bill now repeals three existing tax sections (144.010, 144.014, and 144.020) instead of just one, allowing for the creation of three new sections.

DEFINITION

A new exemption was added for card processing fees, capping them at 3% of the purchase price or the merchant discount fee, whichever is less, to exclude them from sales tax.

The definition for 'Motor vehicle leasing company' was modified by adding optional bracketed text '[shall be]' to the beginning of the sentence.

TECHNICAL

The bill header was updated to reflect the 'Perfected' status and changed the sponsor attribution from the Secretary of State to Senator Nicola.

6578S.01I - Introduced → 6578S.02C - Senate Committee Substitute · 4 edits

MODERATE

This bill was amended to clarify that credit card and debit card processing fees are exempt from sales tax, ensuring these fees are not included in the taxable sale price. The amendment also updated the bill's title to reflect this specific taxability change and adjusted the bill number to indicate it is now a Senate Committee Substitute.

Scope change

The bill's scope was narrowed to explicitly address the tax treatment of card processing fees, clarifying that they are not part of the gross receipts subject to sales tax.

SCOPE

The bill's purpose was updated to specifically mention the taxability of certain card processing fees instead of just general sales tax.

DEFINITION

A new provision was added to explicitly state that charges incident to the extension of credit, including credit and debit card processing fees, are specifically exempted from sales tax calculations.

TECHNICAL

The original text defining 'charges incident to the extension of credit' as including card processing fees was removed and replaced with the new, clearer exemption language.

The bill header and version number were updated from 'Introduced' to 'Senate Committee Substitute' to reflect the legislative process stage.

Modifies provisions relating to the exclusion of certain transactions from sales tax

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