INDIANAPOLIS (WISH) — A state lawmaker on Thursday said charging credit card fees for state services amounts to double taxation.

Sen. Fady Qaddoura, D-Indianapolis, said data provided to him by state budget analysts show the state collects convenience fees on services transacted with credit cards. The fees are the result of service charges from the credit card companies and are passed on directly to the customer. The state does not collect them as revenue, but Qaddoura said the state should cover those costs out of its own budget rather than making customers pay them.

“If taxpayers fund government services in the first place, why do they have to be double-charged to fund the services that they funded in the first place using their tax dollars?” Qaddoura said.

Qaddoura said he will file legislation this session to change the practice. He said the fees vary but, if his bill becomes law, customers at state agencies could save an average of $5 – $7 per transaction. The bill would only apply to the state government.

Qaddoura said the fees are negotiated as part of contract discussions the state has with its vendors. The state just concluded a new set of contracts, so if his bill becomes law, it would not take effect until the current contracts expire around 2027.