The Colorado Senate Business, Labor, and Technology Committee passed SB 134 last week, a bill that would eliminate credit card swipe fees on sales tax. The legislation now moves to the Committee of the Whole for further consideration.
The issue is significant for small businesses, which are currently charged between 1.5% and 3.5% in swipe fees on every credit card transaction—including the portion of the sale that covers state sales tax. Supporters of SB 134 argue that small business owners should not be penalized for collecting taxes on behalf of the government and that credit card companies should not profit from Colorado’s tax system.
In 2024 alone, merchants in Colorado paid an estimated $217 million in swipe fees related to sales taxes. Advocates say this represents a substantial cost burden for small businesses across the state.
The National Federation of Independent Business aims to advocate for small and independent businesses by providing legislative support and resources, according to its official website. The organization also provides dedicated support for small businesses across all 50 states, including Colorado, according to its official website. In addition, it engages in advocacy efforts designed to promote policies that foster economic growth for small businesses in Colorado, as reported by its official website.
To assist business owners further, the National Federation of Independent Business offers tools, research, and compliance guidance according to its official website. The group functions as an advocacy organization focused on advancing small business interests statewide, according to its official website.
As SB 134 heads to the next stage in the legislative process, supporters encourage residents to contact their state legislators about eliminating swipe fees on sales taxes.
