HB373 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Bill Poole
Republican
Session: Regular Session 2014
Title: Sales and use tax, prepaid wireless service defined, prepaid calling card and prepaid authorization number, subject to tax, Secs. 40-23-1, 40-23-60 am'd.
Summary: HB373 clarifies that prepaid wireless service is taxable under Alabama sales tax, whether paid with a physical card or not.
What This Bill Does
It amends Sections 40-23-1 and 40-23-60 to add definitions for prepaid telephone calling cards and prepaid authorization numbers and to state that prepaid wireless service is subject to sales tax. It specifies that prepaid wireless service evidenced by a physical card is treated as a prepaid telephone calling card, while prepaid wireless service not evidenced by a card is treated as a prepaid authorization number. It notes that these changes are clarifications of existing law and apply to open tax periods, with an effective date after governor approval.

Who It Affects
Consumers who purchase prepaid wireless service (whether evidenced by a physical card or not) will pay sales tax on those purchases.
Retailers, carriers, and other sellers of prepaid wireless services or calling cards must collect and remit the sales tax on these transactions.

Key Provisions
Defines prepaid telephone calling card and prepaid authorization number, making prepaid wireless service taxable under the sales tax law.
Distinguishes two forms: physical-card prepaid wireless service is the sale of a prepaid telephone calling card; non-card prepaid wireless service is the sale of a prepaid authorization number.
States the amendments are clarifications of existing law and apply to open tax periods.
Sets an effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation