SB 221·AL·senate
Taxation; to exclude credit card transaction fees from sales and use tax calculations
EnactedFiled Jan 29, 2026
Sponsor: Arthur Orr (R)
Latest Action
Enacted
Apr 17, 2026
Summary
The bill changes Alabama's sales and use tax rules so that credit‑card processing fees are not counted as taxable sales. It applies to businesses that accept credit cards, lowering the amount of state tax they owe, but it does not affect county or municipal taxes unless a separate approval is granted under Act 2025‑280. The change is intended to reduce the tax burden on card‑based transactions.
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