Docket Room
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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