In a move that’ll go over about as well as a soggy tundra boot, Alaska lawmakers are trying to regulate . . . your credit cards paying for tax and tips at the register. But if this passes, small businesses will be the ones left holding the bag.
Stuffed into a broader piece of legislation—courtesy of House Labor and Commerce Co-Chairman Zach Fields—is a quiet little scheme to cap credit card interchange fees specifically on the sales tax and gratuity portion of a transaction. That’s right: they’ve decided the small café in Homer or the gift shop in Ketchikan should eat the cost when you tip your barista or pay your state sales tax. And because this didn’t pass on its own as a separate bill, they’re trying to move it as part of a bigger financial bill package.
Because nothing says “we support small business” like making them subsidize your cinnamon roll and the government’s cut of it—in a crafty way.
Let’s be clear: this isn’t stopping fraud, reducing inflation, or helping the economy. It’s just another regulatory boondoggle, dressed up in populist wool, that quietly shifts more cost onto the very businesses Alaska depends on—especially in rural communities where plastic isn’t optional.
Capping interchange fees on tax and tip doesn’t save consumers money—it just leaves local businesses footing the bill. And in a state where winter lasts seven months and supply chains run on prayer and float planes, that’s not just dumb policy. It’s a direct hit to Main Street.
Honestly, this bill is a bigger threat to Alaska’s small businesses than a Kodiak bear wandering through downtown Palmer. At least the bear doesn’t pretend it’s helping you.
Public testimony is today. If you’re a business owner—or just someone who likes having businesses around—tell the House Labor & Commerce Committee to dump this mess.
Alaska doesn’t need Juneau micromanaging credit card receipts. We need lawmakers who understand that if you kill small businesses with feel-good regulation, nobody’s left to pick up the tab.