Legislative – Taxes on Processing Fees

 

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Take Action: DOR Proposal to Tax Credit Card Fees — Comments Due by Nov. 1

The Missouri Department of Revenue (DOR) has proposed an amendment that would require businesses to charge and remit sales tax on credit card fees added to customer transactions.

This means that if you pass along a processing fee when a customer pays with a credit card, that amount would also become taxable — increasing costs for both businesses and customers.

We have until November 1 to voice our opposition. The DOR has not provided an email for comments, so all letters must be mailed to the address below and received by November 1:

Missouri Department of Revenue
Legislative Office
301 West High Street, Room 218
Jefferson City, MO 65105-0475

To make this easier, we’ve included:

  • A copy of the letter MCFA sent to the DOR
  • A sample letter template (PDF) drafted by Kyna that you can personalize and mail

If you have questions, contact Kyna Maiman at
kynaiman@earthlink.net.

Excerpt from the Proposed Amendment

“Credit card fees that a seller charges a customer who chooses to use a credit card as a form of payment to offset the fees the seller has to pay to the credit card company are subject to tax… Sales tax should be collected and remitted on the total amount including the credit card fee.”

What You Can Do

  • Print and sign a letter using the sample provided.
  • Mail it today to ensure it arrives before November 1.
  • Spread the word — let other small business owners know how this change could impact them.

Together, we can make sure the DOR hears from Missouri businesses before this rule goes into effect.

Download Sample LetterEmail Kyna

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