HB274 Alabama 2011 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2011

Title

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

Summary

HB274 would raise the cigarette tax to 0.75 per pack and send the extra revenue to the State General Fund.

What This Bill Does

Increases the cigarette tax from 0.425 dollars per pack to 0.75 dollars per pack. Requires tax collection through a stamp system and mandates retailers to add the tax to the sale price and collect it from buyers. Directs the increased revenue to be deposited into the State General Fund. Restricts new local cigarette taxes while allowing existing pre-2004 local taxes to remain, with local collection potentially contracted out to others.

Who It Affects

• Cigarette retailers and distributors in Alabama, who must collect the higher tax, attach stamps, and pass the tax onto consumers.
• Alabama residents who buy cigarettes, who would face higher prices per pack due to the tax increase; the revenue from the tax goes to the State General Fund.

Key Provisions

• The cigarette tax is raised to 75 cents per pack, with the extra revenue deposited into the State General Fund.
• Section 40-25-2 is amended to implement stamp-based tax collection and pricing requirements for tobacco products, including cigarettes.
• No new local cigarette taxes may be levied after the effective date; existing local taxes from before May 18, 2004 may remain, and local authorities may contract with others to collect their local tax.
• The act becomes effective on the first day of the third month after it is passed and approved.

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