Amends TCA Title 67.

This bill requires that the amount of a 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 a tax imposed under the Petroleum Products and Alternative Fuels Tax Law, be excluded from the amount on which a fee is charged by a payment card network ("network") for the purpose of compensating the issuer for its involvement in the electronic payment transaction ("interchange fee").<br /> <br /> This bill requires a network to either deduct the amount of a tax imposed from the calculation of interchange fees specific to each form or type of electronic payment transaction at the time of settlement; or rebate an amount of interchange fee proportionate to the amount attributable to the tax or fee. <br /> <br /> Under this bill, a 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 such amounts at the time of sale, then the network must accept proof of such 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. <br /> <br /> A network that violates this bill is 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.<br />