Advocacy in Action | April 3, 2025

S.B. No. 1460: An Act Concerning Interchange Fees on Electronic Payment Transactions

Why are restaurants paying to collect sales tax?!

The electronic networks that process payments charge ALL restaurants and retailers a fee for each transaction, averaging 2% of the total sale. This fee is also charged at 2% on ALL sales tax.

The cost to collect sales tax quickly adds up, costing restaurants like Coracora around $5,000 - or more - annually. This money could be used in other valuable ways, and hugely impacts small businesses of all kinds across Connecticut.

SB 1460, An Act Concerning Interchange Fees on Electronic Payment Transactions, would exempt sales tax from swipe fees on credit or debit card purchases, giving owners the opportunity to reinvest these dollars back into their business.

Across the country, legislators in 11 states are pushing to eliminate credit card swipe fees on sales tax and gratuities, following Illinois' lead in passing a similar law set to take effect in July 2025.

The Electronic Transactions Association (ETA), representing major card issuers and networks, is actively opposing the measures, citing concerns over compliance costs for businesses. Colorado has made the most legislative progress so far, with a bill passing the state House. Meanwhile, Illinois’ law faces legal challenges that could impact similar efforts elsewhere.

The movement has gained bipartisan traction across various states, despite opposition from financial institutions. We will continue to keep you updated on proceedings in Connecticut, and thank our members for their involvement.

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Latest on Tariffs

On April 2nd, President Trump announced tariffs to be levied on almost every country in the world; there will be a baseline 10% tariff on nearly every import to the U.S.

The 10% tariff on all U.S. imports will go into effect April 5, while reciprocal tariffs on 60 countries will be implemented April 9.

Regarding the U.S.' largest trading partners (excluding Canada and Mexico), the list below displays the tariffs to be levied on them and the percentage of U.S. trade that they make up. It is important to remember that these new tariffs may be in addition to previously levied tariffs.

For example: a new 34% tariff is being levied on China, which is in addition to a pre-existing 20% tariff. This means that imports from China are being taxed at an effective rate of 54%. Implemented tariffs include:

Many major trading partners of the U.S. have already come out with responses regarding the tariffs. Some have suggested continued negotiation, others have condemned the action, and some have vowed retaliation if the tariffs are not lifted.

In Washington, a bipartisan act - Trade Review Act of 2025 - has been introduced in the Senate which would require tariffs to receive congressional approval within 60 days prior to implementation. This was introduced by Sen. Chuck Grassley (R-Iowa) and Sen. Maria Cantwell (D-Washington), and it is unclear as of Thursday if it will receive enough support to pass.

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Live Reporting

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Bill Tracker

The Connecticut Restaurant Association actively monitors a wide range of legislation throughout each legislative session. It's important to note that the introduction of a bill does not guarantee its passage.

The CRA Bill Tracker gives you a sense of the breadth and variety of legislation we track throughout session, as well as an overview on the status of each bill. This webpage is updated weekly, and we will keep you informed on any movement through our Advocacy in Action emails and text alerts.

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