Alabama Excludes Credit Card Fees from Sales Tax Calculation

The Alabama legislature has enacted Senate Bill 221, which excludes credit card transaction fees from the calculation of sales and use taxes on electronic payment transactions. The legislation specifically defines credit card transaction fees as those assessed on debit or credit card purchases to offset interchange fees charged to merchants or sellers. This law will take effect on Sept. 1. [S.B. 221, enacted 04/17/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.