The bill, designated as SB221, amends current sales and use tax law in Alabama by excluding credit card transaction fees from the taxable amount for goods and services purchased via credit or debit cards. Specifically, it introduces new legal language that defines key terms such as "CREDIT CARD," "ELECTRONIC PAYMENT TRANSACTION," and "CREDIT CARD TRANSACTION FEE." The bill stipulates that any fees charged to offset interchange fees for electronic payment transactions will not be included in the calculation of sales and use taxes.

Additionally, the bill mandates that the Department of Revenue will establish rules to implement these provisions. The effective date for this act is set for September 1, 2026. There are no deletions from current law noted in the text provided.