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Relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.
No significant fiscal implication to the State is anticipated.
SB 153 would specifically exclude the processing of a payment made by credit card or debit card from the definition of data processing services, which in effect would keep payment processing a non-taxable service with regards to sales and use tax.
It is our understanding that payment processing services are not now, nor ever have been, considered a taxable service. This bill would maintain the status quo by preventing a rule or interpretation at a state agency from making a change to the taxable status of this service. Such a change would be a significant disruption in the marketplace and the decision properly rests with the legislature rather than the Comptroller's office. We support SB 153.