Illinois lawmakers today passed a state budget that includes a ban on the collection of credit and debit card interchange fees for sales taxes, excise taxes and tips for services. The ban, which is scheduled to take effect on July 1, 2025, would be the first of its kind in the nation.
The ban was a late addition to a package of tax changes approved by state lawmakers as part of a proposed $53.1 billion state budget for fiscal year 2025. Illinois retailers currently receive a 1.75% discount on the sales taxes they collect. Gov. J.B. Pritzker proposed capping that discount at $1,000 a month—a plan that received considerable pushback from state retailers. The ban on interchange fees is likely meant to offset the losses retailers will incur once the new cap goes into effect.
Both chambers of the Illinois General Assembly approved the budget and Pritzker has pledged to sign it into law. The governor did not address the ban on interchange fees in a statement on the passage of the budget.
ADVERTIsem*nT
