Alabama legislation · 2026 Regular Session
Alabama SB221: Taxation; to exclude credit card transaction fees from sales and use tax calculations
Status: Signed into law, April 17, 2026
What the bill says
An Act, Relating to sales and use tax; to exclude credit card transaction fees added to the price of goods or services purchased by credit or debit card from the calculation of sales and use taxes.
From the enrolled text:
An Act, Relating to sales and use tax; to exclude credit card transaction fees added to the price of goods or services purchased by credit or debit card from the calculation of sales and use taxes. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. (a) As used in this section, the following terms have the following meanings: (1) CREDIT CARD. Any card, plate, coupon book, or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. The term shall also mean any card or other payment code or device issued or approved for use through a payment card network to debit an asset account, regardless of the purpose for which the account is established, whether authorization is based on signature, personal identification number, or other means. The term includes a general-use prepaid card, as defined in 15 U.S.C. § 16931-1(a)(2)(A). The term does not include paper checks. (2) ELECTRONIC PAYMENT TRANSACTION. A transaction in which a person uses a debit card, credit card, or other payment code or device issued or approved through a payment card network to debit a deposit account or use a line of credit, whether authorization is based on a signature, personal identification number, or other means. (3) CREDIT CARD TRANSACTION FEE. A fee assessed on purchases made …
Sponsors
- Orr, Arthur (R, SD-003) · primary sponsor
Latest actions
- : Enacted
- : Delivered to Governor
- : Signature Requested
- : Enrolled
- : Ready to Enroll
- : Motion to Read a Third Time and Pass - Adopted Roll Call 1297
- : Third Reading in Second House
- : Carried Over to the Call of the Chair
- : Read for the Second Time and placed on the Calendar
- : Reported Out of Committee Second House
Votes
- House Roll Call #1297 (April 8, 2026): 75 yea, 18 nay, passed
- House Roll Call #1296 (April 8, 2026): 83 yea, 15 nay, passed
- Senate Roll Call #952 (March 19, 2026): 33 yea, 0 nay, passed
- Senate Roll Call #951 (March 19, 2026): 6 yea, 28 nay, failed
- Senate Roll Call #474 (February 19, 2026): 28 yea, 0 nay, passed
Subjects: Taxation & Revenue
Common questions
- What is SB221?
- SB221 is a bill in the Alabama Legislature (2026 Regular Session): Taxation; to exclude credit card transaction fees from sales and use tax calculations.
- What does SB221 do?
- In its own words: An Act, Relating to sales and use tax; to exclude credit card transaction fees added to the price of goods or services purchased by credit or debit card from the calculation of sales and use taxes.
- What is the status of SB221?
- Signed into law as of April 17, 2026. Latest action: Enacted (April 17, 2026).
- Who sponsored SB221?
- Orr, Arthur (R, SD-003).
- Where is the official record for SB221?
- On the Alabama Legislature website: https://alison.legislature.state.al.us/instrument/2026RS/SB221
Source: official Alabama record. Tracked by Delilah, AI for legislation across all 50 states and Congress.