---
title: SB 512. "Consumer Inflation Reduction and Tax Fairness Act"; enact
collection: bills
id: 2025-2026/sb512
cite_as: SB 512, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb512
md_url: https://georgiacommons.org/bills/2025-2026/sb512.md
text_url: https://georgiacommons.org/bills/2025-2026/sb512/text
source_url: https://www.legis.ga.gov/legislation/73234
date: 2026-02-17
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb512.md?full=1
bill_number: SB 512
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-02-12
last_action: Senate Read and Referred
sponsors:
- Drew Echols
- Clint Dixon
- Blake Tillery
- Russ Goodman
- Sam Watson
- Timothy Bearden
- Shawn Still
- Josh McLaurin
- Chuck Hufstetler
- Bo Hatchett
- John Albers
- Lee Anderson
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB512/2025
upstream_id: 2116197
summaries_model: claude-sonnet-5
topic_tags:
- interchange fees
- credit card fees
- sales tax
- consumer protection
- retail regulation
---
# SB 512. "Consumer Inflation Reduction and Tax Fairness Act"; enact
## Text
Senate Bill 512
By: Senators Echols of the 49th, Dixon of the 45th, Tillery of the 19th, Goodman of the 8th,
Watson of the 11th and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia
Annotated, the "Fair Business Practices Act of 1975," so as to provide for a limitation on
interchange fees charged by payment card networks for credit or debit card transactions at
retailers; to provide requirements for payment card networks in relation to such interchange
fees; to provide for a civil penalty; to provide for definitions; to provide for a short title; to
provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Consumer Inflation Reduction and Tax
Fairness Act."
SECTION 2.
Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, the
"Fair Business Practices Act of 1975," is amended by adding a new Code section to read as
follows:
"10-1-393.22.
(a) As used in this Code section, the term:
(1) 'Credit or debit card transaction' means a purchase of goods or services by a
consumer at a retailer in this state, an online purchase shipped to an address in this state,
or a purchase made at a location in this state using a credit or debit card.
(2) 'Goods and services consumer purchase price' means the retail price paid by a
consumer for the actual goods or services provided by a retailer, excluding the taxes.
(3) 'Interchange fee' means a fee established, charged, or received by a payment card
network for the purpose of compensating the payment card issuer or payment card
network for its involvement in a credit or debit card transaction.
(4) 'Payment card issuer' means a person that issues a credit or debit card or such issuer's
agent.
(5) 'Payment card network' means an entity that directly or through licensed members,
third-party processors, or agents provides the proprietary services, infrastructure, and
software that route information and data to conduct credit or debit card transaction
authorization, clearance, and settlement. Such term includes the system a person uses in
order to accept as a form of payment a brand of debit card, credit card, or other device
that may be used to carry out credit or debit card transactions.
(6) 'Retailer' means any person or business that operates a physical or digital location in
this state or that sells, supplies, or offers goods or services for sale directly to consumers
and accepts credit or debit card transactions in this state.
(7) 'Taxes' means the amount of any state and local sales and use and excise taxes
applicable to a sale of goods or services provided by a retailer in this state.
(b) No payment card network shall apply an interchange fee to a retailer based on an
amount greater than the goods and services consumer purchase price.
(c) A payment card network shall either exclude the amount of any taxes from the
calculation of interchange fees specific to each credit or debit card transaction or, on no
later than a quarterly basis, refund the amount of interchange fees proportionate to the
amount attributable to the taxes. Nothing in this Code section obligates a payment card
network to verify the accuracy or completeness of the applicable taxes at the time of sale
before calculating the interchange fee specific to each credit or debit card transaction.
(d) If a retailer is unable or chooses not to capture and transmit the applicable taxes at the
time of sale, the payment card network is not obligated to exclude taxes from the
calculation of interchange fees for such retailer's credit or debit card transactions at the time
of sale, and, upon receipt of proof of taxes collected by such retailer, the payment card
network shall provide the refund on a quarterly basis consistent with subsection (c) of this
Code section.
(e) A payment card network that willfully violates this Code section shall be subject to a
civil penalty in an amount equal to any interchange fees paid by the retailer on the taxes
for the goods or services provided by such retailer in a calendar year plus 10 percent.
(f) It shall be unlawful to alter or manipulate an interchange fee:
(1) By increasing the interchange fee rate that is imposed upon the portion of a credit or
debit card transaction;
(2) That is not attributable to taxes; and
(3) That is imposed to circumvent the effect of this Code section."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia Senate bill would stop payment card networks like Visa and Mastercard from charging interchange fees on the sales tax portion of credit and debit card purchases, requiring refunds or fee exclusions for taxes.
### Plain-language summary
When a customer pays with a credit or debit card, the retailer pays a fee to the payment card network, often calculated as a percentage of the entire transaction, including sales tax. This bill, called the Consumer Inflation Reduction and Tax Fairness Act, would change that by amending Georgia's Fair Business Practices Act (O.C.G.A. Part 2 of Article 15 of Chapter 1 of Title 10) to bar interchange fees on the tax portion of a sale.
Payment card networks would have to either exclude taxes from the fee calculation at the time of sale or refund the tax-related portion of the fee to retailers at least quarterly. If a retailer cannot provide tax information at checkout, the network can still charge on the full amount but must refund the tax-related fees once it gets proof of the taxes collected. Networks that willfully violate the law face a civil penalty equal to the tax-related fees charged in a year plus 10 percent. The bill also bans manipulating fees to get around these rules.
### What it does
- Bars payment card networks from charging interchange fees based on any amount above the actual price of goods or services, excluding taxes.
- Requires payment card networks to either exclude taxes from interchange fee calculations or refund the tax-related portion of fees at least once per quarter.
- Allows networks to delay refunds for retailers who cannot capture tax data at checkout, but requires refunds once proof of taxes collected is provided.
- Imposes a civil penalty on networks that willfully violate the law, equal to the tax-related fees charged in a calendar year plus 10 percent.
- Makes it illegal to raise interchange fee rates or otherwise manipulate fees in order to get around the new tax exclusion requirement.
- Creates definitions for terms like 'interchange fee,' 'payment card network,' 'retailer,' and 'taxes' to clarify how the law applies.
### Who it affects
Retailers of all kinds operating physical or online locations in Georgia, payment card networks such as Visa and Mastercard, payment card issuers (typically banks), and indirectly consumers who pay with credit or debit cards for purchases that include state and local sales, use, or excise taxes.
### Why it matters
Retailers currently pay interchange fees calculated on the full transaction amount, including sales tax, which some argue inflates costs. If enacted, retailers would keep more money on card transactions since fees would no longer apply to the tax portion, potentially affecting pricing decisions and the cost of accepting card payments in Georgia.
### Key provisions
- Section 1 names the law the 'Consumer Inflation Reduction and Tax Fairness Act.'
- Section 2 adds new Code Section 10-1-393.22 defining key terms including 'interchange fee,' 'payment card network,' 'retailer,' and 'taxes.'
- Subsection (b) prohibits payment card networks from basing interchange fees on any amount greater than the actual goods and services price, excluding taxes.
- Subsection (c) requires networks to exclude taxes from fee calculations or refund the tax-related fee amount at least quarterly.
- Subsection (d) addresses cases where retailers cannot provide tax data at the time of sale, requiring refunds later once proof is submitted.
- Subsection (e) sets a civil penalty for willful violations equal to the tax-related fees charged in a year plus 10 percent.
- Subsection (f) bans altering or manipulating interchange fees to circumvent the law's effect.
- Section 3 repeals any conflicting laws.
## Status
- Status: Introduced (2026-02-12)
- Last action: Senate Read and Referred (2026-02-17)
- Sponsors: Drew Echols, Clint Dixon, Blake Tillery, Russ Goodman, Sam Watson, Timothy Bearden, Shawn Still, Josh McLaurin, Chuck Hufstetler, Bo Hatchett, John Albers, Lee Anderson
- Official page: https://www.legis.ga.gov/legislation/73234
> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb512.md?full=1