PHX Reporter

Arizona Representative Jeff Weninger has announced the advancement of House Bill 2629, which aims to address what he describes as a "hidden tax" on Arizona businesses. The bill, having cleared the House Commerce Committee, is set to move to the full House for consideration.

Representative Weninger, who also owns a small business, highlights the impact of swipe fees charged by credit card companies. These fees are applied to every transaction and can range from 1% to 5%. He points out that these fees are not only applied to goods and services but also include sales tax, which businesses must collect and remit.

Weninger states, "That means credit card companies are making billions of dollars from the taxes that consumers pay—money that was never theirs to begin with." He argues this constitutes double taxation on Arizona businesses.

The proposed legislation seeks to ensure that swipe fees are only charged on the pre-tax amount of transactions. Weninger emphasizes the burden these fees place on consumers and businesses alike, noting that low-income consumers face higher costs due to these fees.

He adds that since the pandemic, swipe fees have increased nearly 50%, impacting both businesses and consumers. In 2023 alone, Arizona businesses reportedly paid over $217 million in swipe fees on sales taxes.

Weninger calls for support from fellow lawmakers: "I urge my fellow lawmakers to support HB2629 and put an end to this hidden tax on Arizona businesses."

For more information about HB2629, visit www.wipetheswipe.com.

Information from this article can be found here.