Reversing a judgment of the circuit court, the Alabama Court of Civil Appeals held that sales of prepaid authorization numbers that allow purchasers to access wireless services on cellular telephones are subject to the state’s sales tax. The court reasoned that during the 2008 through 2011 tax years at issue, the relevant sales tax statute treated a sale of a prepaid telephone calling card or prepaid authorization number as a taxable sale of tangible personal property.

Alabama Dep’t of Revenue v. Downing, No. 2170129, 2018 WL 3489917, at *6 (Ala. Civ. App. July 20, 2018).