Alabama SB221 excludes credit card transaction fees from sales and use tax calculations.
Alabama SB221 modifies sales and use tax calculations by excluding credit card transaction fees. Under current law, these fees are included in tax calculations for credit or debit card purchases. The bill defines "credit card transaction fee" as a fee assessed to offset interchange fees charged to a merchant. The Department of Revenue will establish rules to administer this change, which takes effect on September 1, 2026.
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