HB119 Alabama 2010 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2010

Title

Cigarettes, tax increased, Sec. 40-25-2 am'd.

Summary

HB119 would raise the state cigarette tax to 0.75 per pack and expand tobacco taxes under a license/privilege system with stamp-based collection.

What This Bill Does

It increases the cigarette tax from 26 cents to 75 cents per pack and specifies how the money is distributed. It creates license or privilege taxes on tobacco products (including cigars, cheroots, stogies, cigarettes, smoking tobacco, chewing tobacco, snuff, and substitutes) with rates based on sales volume or price. It uses a stamp-based tax collection system where sellers must add the tax to prices, affix stamps to packaging, and collect the tax from consumers. All revenue from the increased tax would go to the State General Fund, the act becomes effective three months after passage, and it restricts new local tobacco taxes while outlining collection rules for local governments.

Who It Affects

• Consumers in Alabama who purchase cigarettes and other tobacco products in the state (they will face higher prices due to the increased cigarette tax and the stamp-based collection).
• Tobacco product sellers, wholesalers, and manufacturers in Alabama (they will be subject to new license taxes, must collect and remit the tax, and must use stamps for tax collection).

Key Provisions

• Cigarette tax increased from 0.26 to 0.75 per pack and revenue to be deposited into the State General Fund.
• Imposition of license or privilege taxes on tobacco products (rates vary by product and quantity/price, including cigars, cheroots, stogies, cigarettes, smoking tobacco, chewing tobacco, and snuff).
• Tax collection implemented through stamps; sellers must add the tax to sales prices and affix stamps to packaging or containers; stamps designed to secure payment.
• No new local tobacco taxes or license fees after the act’s effective date; existing local taxes as of 2004 may remain, but no additional local taxes may be levied.
• Effective date: first day of the third month after the act is passed and approved; revenue from the increase goes to the State General Fund.

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