HB 751 — AN ACT relating to use of a credit card or debit card.

Summary

Repeal, reenact as a new section of KRS Chapter 365, and amend KRS 369.135 to define "credit card" and "debit card"; expand section, relating to the use of a digital asset as a method of payment, to apply to credit cards and debit cards.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill repeals the existing law on the use of digital assets and establishes new provisions regarding the use of credit and debit cards as payment methods while retaining certain tax exemptions.

• KRS 369.135

  Use of digital assets as method of payment and use of wallet -- Prohibition against additional taxes or withholdings. → As used in this section: (a) "Credit card" means an instrument or device, which may be in tangible or electronic form, that is issued by a business organization or financial institution for use by a cardholder to obtain goods, services, or anything else of value on credit; (b) "Debit card" means an instrument or device, which may be in tangible or electronic form, that is issued by a business organization or financial institution for use by a cardholder to obtain goods, services, or anything else of value, where payment for the goods, the services, or anything else of value is made using funds previously deposited by the cardholder; and (c) "Digital asset" has the same meaning as in KRS 369.130; and (d) "Wallet" has the same meaning as in KRS 369.130.

  The section is completely replaced with new definitions for credit cards, debit cards, and reiteration of digital asset and wallet definitions.

• KRS 369.135

  An individual shall not be prohibited from: (a) Accepting digital assets for payment for legal goods or services; or (b) The use of a wallet. → An individual shall not be prohibited from: (a) Accepting a digital asset, credit card, or debit card as a method of payment for legal goods or services; or (b) The use of a wallet.

  It allows acceptance of credit and debit cards along with digital assets for payments.

• KRS 369.135

  Digital assets used as a method of payment shall not be subject to additional taxes, withholdings, assessments, or charges that are based solely on the use of the digital asset as the method of payment. → A digital asset, credit card, or debit card used as a method of payment shall not be subject to additional taxes, withholdings, assessments, or charges that are based solely on the use of the digital asset, credit card, or debit card as the method of payment.

  The new law maintains a tax exemption for the use of digital assets, credit cards, and debit cards.

• KRS 369.135

  This section shall not: (a) Prohibit the imposition or collection of taxes, withholdings, assessments, or charges on digital assets used as the method of payment when the same imposition and collections of taxes, withholdings, assessments, or charges are made on similar transactions which use the legal tender of the United States as the method of payment; or (b) Require any person to accept digital assets for payment for legal goods or services. → This section shall not: (a) Prohibit the imposition or collection of taxes, withholdings, assessments, or charges on a digital asset, credit card, or debit card used as the method of payment when the same imposition and collections of taxes, withholdings, assessments, or charges are made on similar transactions which use the legal tender of the United States as the method of payment; or (b) Require any person to accept a digital asset, credit card, or debit card as a method of payment for legal goods or services.

  Tax regulations are expanded to include credit and debit cards, while also maintaining the option not to accept them.

Action History

1. March 04, 2026

   to Banking & Insurance (H)

2. February 25, 2026

   to Committee on Committees (H)

3. February 25, 2026

   introduced in House

Sponsors

• Candy Massaroni · Primary

Subjects