Bill > SB221

This bill, effective September 1, 2026, amends Alabama tax law to exclude credit card transaction fees from the calculation of sales and use tax. It defines a "credit card" broadly to include various payment devices, an "electronic payment transaction" as any purchase made using a debit card, credit card, or similar device, and a "credit card transaction fee" as a charge to a merchant or seller to cover interchange fees associated with card payments. Essentially, this means that the portion of a sale price that goes towards covering these card processing fees will no longer be subject to sales and use tax, and the Department of Revenue will create rules to implement this change.

Budget and Finance

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