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Read. Follow. Verify.Alabama excludes credit card processing fees from sales and use tax calculations starting September 2026
Last action · April 17, 2026: EnactedSponsor: Arthur Orr
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What This Bill Does
Alabama law now excludes credit card transaction fees added to consumer purchases from the total price used to calculate state es, effective September 1, 2026.
Consumers and merchants engaging in electronic payment transactions will see sales tax calculated only on the base price of goods or services rather than the total amount including credit card surcharges.
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
consumers using credit or debit cards
Purchasers paying with debit or credit cards will no longer be assessed sales and use tax on transaction fees added to the cost of goods or services.
merchants and sellers
Sellers must adjust their sales and use tax calculations to exclude credit card processing surcharges from the taxable amount.
Department of Revenue
The department is required to establish administrative rules to implement the provisions of the act.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What fees are excluded from sales tax under this law?
When does this change take effect?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Became law.
Procedural history
21 actions- Apr 17, 2026SenateEnrolledEnacted
- Apr 8, 2026SenateEnrolledDelivered to Governor
- Apr 8, 2026HouseSignature Requested
- Apr 8, 2026SenateEnrolled
- Apr 8, 2026SenateReady to Enroll
- Apr 8, 2026HouseFloorMotion to Read a Third Time and Pass - Adopted Roll Call 1297
Show 15 earlier actions
- Apr 8, 2026HouseThird Reading in Second House
- Apr 8, 2026HouseCarried Over to the Call of the Chair
- Apr 1, 2026HouseRead for the Second Time and placed on the Calendar
- Apr 1, 2026HouseCommitteeReported Out of Committee Second House
- Mar 19, 2026HouseCommitteePending Committee Action in Second House
- Mar 19, 2026HouseIntroducedRead for the first time and referred to the House Committee on Ways and Means Education
- Mar 19, 2026SenateFloorMotion to Read a Third Time and Pass - Adopted Roll Call 952
- Mar 19, 2026SenateStewart motion to Adopt - Lost Roll Call 951
- Mar 19, 2026SenateStewart 1st Amendment Offered
- Feb 19, 2026SenateCarried Over
- Feb 19, 2026SenateThird Reading in House of Origin
- Feb 12, 2026SenateRead for the Second Time and placed on the Calendar
- Feb 11, 2026SenateCommitteeReported Out of Committee House of Origin
- Jan 29, 2026SenateCommitteePending Committee Action in House of Origin
- Jan 29, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on Finance and Taxation Education
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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