Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

This bill creates a new business and occupation (B&O) tax deduction and increases the B&O tax rate for entities conducting payment card processing activities. It allows payment card processors, including acquirers and issuers, to deduct specific amounts like interchange fees and network fees from their taxable gross income. The legislation aims to address the unique financial structures of payment system arrangements for these processors. These changes modify existing state tax laws and are set to become effective on January 1, 2026.