The Legislature has passed and the Governor has signed Act No. 97-867.

This legislation amends Sections 40-23-1 and 40-23-60, Code of Alabama 1975, adding new sections 40-23-1(a)(13) and 40-23-60(13) respectively to provide that sales of prepaid telephone calling cards or prepaid authorization numbers, or both, are sales of tangible personal property subject to sales or use tax.

Act No. 97-867 amends Sections 40-21-83 and 40-21-103, Code of Alabama 1975, adding new sections 40-21-83(10) and 40-21-103(10) respecitively to exclude the furnishing of utility services through the use of a prepaid telephone calling card from the utility gross receipts tax and the utility service use tax. Pursuant to the provisions of subsections 40-21-83(2) and 40-21-103(2) the furnishing of utility services through the use of a prepaid authorization number would also be excluded from the utility gross receipts tax and the utility service use tax.

This legislation also amends Section 40-21-122, Code of Alabama 1975, adding new section 40-21-122(4) to exclude the furnishing of cellular telephone services through the use of a prepaid telephone calling card, a prepaid authorization number, or both, from the cellular radio telecommunication services tax.

Act No. 97-867 is effective December 1, 1997.