ColoradoVetoed bill would exclude sales taxes from some card fee calculations
The vetoed bill proposed excluding taxes from certain card fees and directing large retailers to use any resulting savings for lower prices or employee pay and benefits.
What it does
The vetoed bill proposed making card networks leave tax amounts out of certain percentage-based fees. It included exceptions for some cards from smaller issuers and several ways to comply.
People injured by a network's violation could sue under the vetoed bill. Successful cases could bring damages and legal costs, while certain abusive lawsuits could make the person who filed pay the network's costs.
Large retail businesses would have to use any savings from the vetoed bill's rules to lower prices or invest in employee wages or benefits.
Argument forMerchants could pay lower card fees on taxed sales because networks would have to exclude the tax amount from certain percentage-based fee calculations.
Argument againstSome merchants and networks might face extra work tracking taxes and adjusting fee billing, especially when tax details are unavailable at settlement.
More detail
The vetoed bill proposed barring payment card networks from charging certain percentage-based fees on the tax portion of a transaction. The proposed rules cover payment card networks and electronic transactions involving state or local sales, use, occupation, or excise taxes. The proposed bar applies when the fee is based on a percentage of the transaction total and does not exclude the tax amount. The bar would not apply to a fee used only for transactions with cards from issuers that meet the bill's asset test or specified branding condition. Networks could comply by excluding taxes at settlement, rebating the related fee, crediting a later tax adjustment, or billing after taxes are identified and excluded. The bill proposed taking effect January 1, 2028. If a referendum petition were filed, it would take effect only if voters approved it, on January 1, 2028, or when the governor officially declared the vote, whichever came later; it would cover conduct on or after that date.
The vetoed bill proposed letting an injured person sue a payment card network for violating its rules. The proposed right to sue would cover a merchant, consumer, or other person injured by a network's violation. In an individual case, a successful plaintiff could recover the greater of actual damages or $500; proven bad faith could raise actual damages to three times their amount. A successful class action could recover actual damages, legally allowed orders to stop the conduct, and reasonable attorney fees and costs. A person whose case is found frivolous, groundless, and brought in bad faith or to harass could owe the network its costs and reasonable attorney fees. The bill proposed taking effect January 1, 2028, subject to voter approval if a referendum petition were filed, and applying to conduct on or after the applicable effective date.
The vetoed bill proposed requiring certain large retail businesses to use any savings from its rules to lower consumer prices or invest in employee wages or benefits. The proposed requirement would apply to retail businesses whose parent company had more than 500 employees statewide on the section's effective date. The requirement would cover a retail business with more than 500 employees statewide, counting employees across its parent company. The bill ties the requirement to savings resulting from its provisions. The bill proposed applying the savings rule in the 2026–27 state fiscal year and each year after; the section's proposed effective date was January 1, 2028, or later if a referendum were filed and approved.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 3Governor Jared Polis VetoedLatest
- May 22Signed by the President of the SenateMajor
- May 22Signed by the Speaker of the HouseMajor
- May 22Sent to the GovernorTo Governor
- May 6House Third Reading Passed - No AmendmentsPassed House
- Vote recorded BILL. Result: pass.Lower
- May 5House Second Reading Special Order - Passed - No Amendments
- May 4House Committee on Finance Refer Unamended to House Committee of the WholeMinor
- Vote recorded Refer Senate Bill 26-134 to the Committee of the Whole. Result: pass.Upper
- Vote recorded Refer Senate Bill 26-134 to the Committee of the Whole. Result: pass.Lower
- May 1Introduced In House - Assigned to FinanceMinor
- Vote recorded BILL. Result: pass.Upper
- Apr 29Senate Third Reading Passed - No AmendmentsPassed Senate
- Vote recorded BILL. Result: pass.Upper
- Apr 28Senate Third Reading Laid Over Daily - No Amendments
- Apr 27Senate Second Reading Passed with Amendments - FloorMinor
- Apr 24Senate Second Reading Laid Over to 04/27/2026 - No Amendments
- Apr 20Senate Second Reading Laid Over to 04/24/2026 - No Amendments
- Apr 17Senate Second Reading Laid Over to 04/20/2026 - No Amendments
- Apr 13Senate Second Reading Laid Over to 04/17/2026 - No Amendments
- Apr 10Senate Second Reading Laid Over to 04/13/2026 - No Amendments
- Apr 9Senate Second Reading Laid Over to 04/10/2026 - No Amendments
- Apr 8Senate Second Reading Laid Over to 04/09/2026 - No Amendments
- Apr 7Senate Second Reading Laid Over to 04/08/2026 - No Amendments
- Apr 6Senate Second Reading Laid Over to 04/07/2026 - No Amendments
- Apr 2Senate Second Reading Laid Over to 04/06/2026 - No Amendments
- Apr 1Senate Second Reading Laid Over to 04/02/2026 - No Amendments
- Mar 31Senate Second Reading Laid Over to 04/01/2026 - No Amendments
- Mar 30Senate Second Reading Laid Over to 03/31/2026 - No Amendments
- Mar 26Senate Second Reading Laid Over to 03/30/2026 - No Amendments
- Mar 25Senate Second Reading Laid Over to 03/26/2026 - No Amendments
- Mar 24Senate Second Reading Laid Over to 03/25/2026 - No Amendments
- Mar 23Senate Second Reading Laid Over to 03/24/2026 - No Amendments
- Mar 20Senate Second Reading Laid Over to 03/23/2026 - No Amendments
- Mar 19Senate Second Reading Laid Over to 03/20/2026 - No Amendments
- Mar 18Senate Second Reading Laid Over to 03/19/2026 - No Amendments
- Mar 17Senate Second Reading Laid Over to 03/18/2026 - No Amendments
- Mar 16Senate Second Reading Laid Over to 03/17/2026 - No Amendments
- Mar 12Senate Committee on Business, Labor, & Technology Refer Unamended to Senate Committee of the WholeMinor
- Vote recorded Adopt amendment L.002. Result: fail.Upper
- Vote recorded Adopt amendment L.001. Result: fail.Upper
- Vote recorded Refer Senate Bill 26-134 to the Committee of the Whole. Result: pass.Upper
- Mar 4Introduced In Senate - Assigned to Business, Labor, & TechnologyIntroduced
Consumer ProtectionEconomy & Jobs