AlabamaAlabama would exclude card fees when calculating sales tax
Starting September 1, 2026, sellers' credit and debit card fees to cover payment network charges would not count toward sales and use tax.
What it does
When a seller adds a card fee to cover payment network charges, that fee is left out when sales or use tax is calculated on the purchase.
Alabama's Department of Revenue must make rules for administering the card-fee tax provision.
Argument forShoppers may pay sales tax on a smaller amount when a seller adds a card fee to cover payment network charges.
Argument againstSellers may still need to account for the transaction fee separately, which could make checkout totals harder for shoppers to understand.
More detail
Exclude the card transaction fee from the amount used to calculate sales and use tax. This applies to purchases made with a credit card, debit card, or other payment device covered by the bill's definition. The fee must be charged on an electronic payment to offset interchange fees charged to a merchant or seller. The act takes effect on September 1, 2026.
The Department of Revenue must make rules to administer the act. The rulemaking duty belongs to Alabama's Department of Revenue. The act takes effect on September 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 8Carried Over to the Call of the Chair
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1297. Result: pass.Lower
- Apr 8Third Reading in Second House
- Apr 8Motion to Read a Third Time and Pass - Adopted Roll Call 1297Passed House
- Apr 8Ready to Enroll
- Apr 8EnrolledTo Governor
- Apr 8Signature Requested
- Apr 8Delivered to GovernorMinor
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Ways and Means Education)Minor
- Mar 19Stewart 1st Amendment OfferedMinor
- Vote recorded Stewart motion to Adopt - Lost Roll Call 951. Result: fail.Upper
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 952. Result: pass.Upper
- Mar 19Stewart motion to Adopt - Lost Roll Call 951Minor
- Mar 19Motion to Read a Third Time and Pass - Adopted Roll Call 952Passed Senate
- Mar 19Read for the first time and referred to the House Committee on Ways and Means EducationMinor
- Mar 19Pending Committee Action in Second House (Ways and Means Education)
- Feb 19Third Reading in House of Origin
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Feb 19Carried Over
- Feb 12Read for the Second Time and placed on the Calendar (Finance and Taxation Education)Minor
- Feb 11Reported Out of Committee House of Origin
- Jan 29Read for the first time and referred to the Senate Committee on Finance and Taxation EducationMinor
- Jan 29Pending Committee Action in House of Origin (Finance and Taxation Education)Introduced
Taxes & BudgetConsumer ProtectionEducation