Amends TCA Title 67.

This bill requires that the amount of any state or local tax or fee that is calculated as a percentage of an electronic payment transaction amount and listed separately on the payment invoice or other demand for payment, or the amount of any taxes imposed under the Petroleum Products and Alternative Fuels Tax, be excluded from the amount on which an interchange fee is charged for that electronic payment transaction. This bill defines "interchange fee" as a fee established, charged, or received by a payment card network for the purpose of compensating the issuer for its involvement in an electronic payment transaction. This bill provides that such taxes and fees include, but are not limited to: (1) Sales and use taxes; (2) Hotel occupancy taxes or an applicable private act; (3) Alcoholic beverage taxes; and (4) Rental vehicle surcharge taxes. This bill requires a payment card network to either: (1) Deduct the amount of any tax imposed from the calculation of interchange fees specific to each form or type of electronic payment transaction at the time of settlement; or (2) Rebate an amount of interchange fee proportionate to the amount attributable to the tax or fee. Under this bill, any deduction or rebate must occur at the time of settlement when the merchant or seller is able to capture and transmit tax or fee amounts relevant to the sale at the time of sale as part of the transaction finalization. This bill also provides that if a merchant or seller is unable to capture and transmit tax or fee amounts relevant to the sale at the time of sale, then the payment card network must accept proof of tax or fee amounts collected on sales subject to an interchange fee upon the submission of sales data by the merchant or seller and promptly credit the merchant or seller's settlement account. A payment card network that violates this bill will be subject to a civil penalty of not more than $1,000 per violation, payable to the plaintiff, and must refund the surcharge to each merchant or seller.