Michael Smith, State Director of the National Federation of Independent Business (NFIB) in Colorado, urged lawmakers on April 20 to support Senate Bill 134, which would eliminate credit card swipe fees on sales taxes. Smith appeared on 9NEWS Business Buzz with Ryan Frazier ahead of an expected Senate vote and called for action to keep more money with local businesses.
The issue is significant because many small businesses in Colorado pay substantial amounts in swipe fees, which are charged by credit card companies when customers use cards for purchases. These fees are often a major expense for business owners and can impact their ability to invest in growth or hire employees.
Smith said, “Small businesses are collecting sales tax for Colorado and then turning around and paying millions of dollars to big banks on Wall Street. And that’s not right.” He added that these funds could be better used by local businesses rather than being sent out of state. According to Smith, “The cost of these swipe fees has become one of the largest expenses for many small businesses in Colorado. The second, third biggest expense, and that’s extraordinary… I’ve members who are paying $8,000 a month, and they’re telling me, ‘I could hire two employees this year for that amount.’”
In 2024 alone, merchants across the state paid an estimated $217 million in swipe fees just on sales taxes. SB 134 aims to address this by eliminating such charges specifically related to sales tax collection.
Smith emphasized the importance of every dollar staying with small business owners: “Every dollar for small businesses matters,” he said. “Some are going to invest more in their businesses and grow it. [Others will] have more money for their employees… This bill would be good for Colorado small businesses, good for Colorado, good for consumers, and good for Colorado families.”
The National Federation of Independent Business advocates on behalf of small and independent companies by providing legislative support and resources according to its official website. The organization also offers dedicated support across all states including tools and compliance guidance according to its official website. It focuses its advocacy efforts toward policies intended to foster economic growth among small enterprises according to its official website.
