ORDINANCE NO. BL2006-1093
An ordinance to amend Ordinance No. BL2001-777 by partially repealing the waiver of fees for processing credit or debit card payments when collecting funds on behalf of the Metropolitan Government.
WHEREAS, Tennessee Code Annotated § 9-1-108 currently mandates local governments to set and collect a credit or debit card processing fee in an amount that is equal to an amount paid to a third-party processor and does not exceed five percent (5%) of the amount of the payment collected; and
WHEREAS, Tennessee Code Annotated § 9-1-108 was amended by Chapter 348 of the Public Acts of 2001 to authorize a metropolitan government to waive the collection of a processing fee for accepting payment by use of credit or debit cards; and
WHEREAS, Ordinance No. BL2001-777 was adopted to waive the fee for processing credit card or debit card payments when collecting funds on behalf of the Metropolitan Government; and
WHEREAS, the Metropolitan Government can no longer financially absorb all fees for processing credit or debit card payments when collecting funds on behalf the Metropolitan Government, and it is in the best interest of the Metropolitan Government to repeal the waiver of such processing fees, except in the case of point of sale transactions.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the waiver of fees established by BL2001-777 for processing credit or debit card payments when collecting funds on behalf of the Metropolitan Government is hereby repealed, except that the waiver of fees shall remain in effect for point of sale transactions.
Section 2. That there shall be a credit or debit card processing fee imposed when funds are collected on behalf of the Metropolitan Government, except in the case of point of sale transactions. Such fee shall be in an amount equal to the amount paid to the third-party processor for processing the payment but shall not exceed the maximum permitted by Tennessee Code Annotated § 9-1-108, as amended.
Section 3. That as referenced herein, a "point of sale transaction" is one where the cardholder is physically present at the location at which the goods or services are sold at the time that the credit card or debit card transaction occurs.
Section 4. That any Metropolitan Government entity or officer collecting funds through payment by credit card or debit card shall state on any notice to the person owing the tax, fine, fee or other money either the percentage of the processing fee for use of a credit card or debit card or the actual fee imposed for the use of a credit card or debit card.
Section 5. That this ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Amanda
|Introduced:||June 6, 2006|
|Passed First Reading:||June 6, 2006|
|Referred to:||Budget & Finance Committee|
|Passed Second Reading:||June 20, 2006|
|Passed Third Reading:||June 27, 2006|
|Approved:||June 29, 2006|