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Alabama Bill Proposes Excluding Credit Card Fees from Sales and Use Tax Calculations

  • Senate Bill 221 (SB 221) from Alabama’s 2026 Regular Session addresses sales and use tax calculations.
  • The bill proposes to exclude credit and debit card transaction fees (“swipe fees” or convenience fees) from the taxable amount.
  • Currently, these transaction fees are included in the sales and use tax base.
  • If passed, sales tax would only apply to the price of goods and services, not the additional processing fees.

Source: alison.legislature.state.al.us

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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