Alabama § 40-23-26.2 - Credit Card Transaction Fees Excluded from Calculation of Sales and Use Taxes.
Full text of Alabama Code of Alabama § 40-23-26.2 — Credit Card Transaction Fees Excluded from Calculation of Sales and Use Taxes., with citation guidance and answers to common questions.
§ 40-23-26.2. Credit Card Transaction Fees Excluded from Calculation of Sales and Use Taxes.
(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 by debit or credit card to offset interchange fees charged to a merchant or seller.
(b) The amount of any credit card transaction fee charged for an electronic payment transaction shall be excluded from the amount on which basis sales and use tax is assessed for that electronic payment transaction.
(c) The Department of Revenue shall establish rules to administer the provisions of this section.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-23-26.2
What does Code of Alabama § 40-23-26.2 cover?
Section 40-23-26.2 ("Credit Card Transaction Fees Excluded from Calculation of Sales and Use Taxes.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-23-26.2?
A common citation format is "Code of Alabama § 40-23-26.2" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-23-26.2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.