Retailer Tax Fairness act; enact.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Fillingane

SENATE BILL NO. 3121

AN ACT TO ENACT THE "RETAILER TAX FAIRNESS ACT"; TO DEFINE 1
CERTAIN TERMS RELATING TO ELECTRONIC PAYMENT TRANSACTIONS; TO 2
PROVIDE THAT A MERCHANT OR SELLER COLLECTING STATE TAXES OR LOCAL 3
TAXES FROM A PURCHASER IN ANY ELECTRONIC PAYMENT TRANSACTION FOR 4
WHICH THE MERCHANT OR SELLER PAYS OR IS CHARGED AN INTERCHANGE FEE 5
WILL BE ENTITLED TO A CREDIT AGAINST SUCH TAXES; TO PROVIDE FOR 6
THE AMOUNT OF THE TAX CREDIT; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. (1) This section shall be known and may be cited 9
as the "Retailer Tax Fairness Act." 10
(2) For the purposes of this section, the following words 11
shall have the meanings as defined in this section, unless the 12
context clearly requires otherwise: 13
(a) "Credit card" means any card, plate, coupon book, 14
or other credit device existing for the purpose of obtaining 15
money, property, labor, or services on credit. 16
(b) "Debit card" means any card, or other payment code 17
or device, issued or approved for use through a payment card 18
network to debit an asset account, regardless of the purpose for 19
which the account is established, whether authorization is based 20
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on signature, personal identification number, or other means. The 21
term "debit card" includes a general-use prepaid card, as defined 22
in 15 USC Section 1693l-1(a)(2)(A), and does not include paper 23
checks. 24
(c) "Electronic payment transaction" means a 25
transaction in which a person uses a debit card, credit card, or 26
other payment code or device, issued or approved through a payment 27
card network to debit a deposit account or use a line of credit, 28
whether authorization is based on a signature, personal 29
identification number, or other means. 30
(d) "Interchange fee" means a fee established, charged, 31
or received by a payment card network for the purpose of 32
compensating the issuer for its involvement in an electronic 33
payment transaction. 34
(e) "Issuer" means any entity issuing a debit card or 35
credit card, or the issuer's agent. 36
(f) "Payment card network" means an entity that: 37
(i) Directly, or through licensed members, 38
processors, or agents, provides the proprietary services, 39
infrastructure, and software that routes information and data to 40
conduct debit card or credit card transaction authorization, 41
clearance, and settlement; and 42
(ii) A merchant or seller uses in order to accept 43
as a form of payment a brand of debit card, credit card, or other 44
device that may be used to carry out debit or credit transactions. 45
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ST: Retailer Tax Fairness act; enact.
(g) "Settlement" means the transfer of funds from a 46
customer's account to a seller or merchant upon electronic 47
submission of finalized sales transactions to the payment card 48
network. 49
(3) (a) Each merchant or seller collecting state taxes 50
and/or local taxes shall be entitled to a credit against such 51
state taxes and/or local taxes, respectively, equal to the product 52
of the state taxes and local taxes collected from a purchaser in 53
any electronic payment transaction for which such merchant or 54
seller pays or is charged an interchange fee multiplied by two and 55
one-half percent (2-1/2%). 56
(b) For the purposes of this section, the term "state 57
taxes" includes the amount of any taxes imposed under Chapter 65, 58
Title 27, Mississippi Code of 1972, as amended, and the amount of 59
all state taxes imposed under Sections 27-55-11, 27-55-519, 60
27-59-11, 49-17-407 and 65-33-47. 61
(c) For the purposes of this section, the term "local 62
tax" includes any tax levied and collected under the authority of 63
any local and private law of the State of Mississippi upon hotels, 64
motels, restaurants or otherwise. 65
SECTION 2. This act shall take effect and be in force from 66
and after July 1, 2026. 67