HB457 Alabama 2011 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2011

Title

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

Summary

HB457 would raise Alabama's cigarette tax and specify how the new money is spent on health programs and cancer centers.

What This Bill Does

It increases the tax on cigarettes from about $0.425 per pack to about $1.425 per pack. It designates how the additional revenue should be spent—primarily on Medicaid and the Children First Trust Fund, with additional funds for two university cancer centers and a tobacco cessation program. It maintains the current tobacco tax framework (license taxes and stamp collection) and sets the effective date as the first day of the third month after the act becomes law.

Who It Affects

• Cigarette buyers in Alabama who would pay a higher price due to the increased tax.
• State programs and health initiatives (Medicaid, Children First Trust Fund, University of Alabama at Birmingham Comprehensive Cancer Center, Mitchell Cancer Center, and the Alabama Department of Public Health tobacco cessation program) that receive designated funding from the new revenue.

Key Provisions

• Tax on cigarettes increased from about $0.425 to about $1.425 per pack.
• Revenue from the increase is allocated: 44.5% to Medicaid, 44.5% to the Children First Trust Fund, 5% to the UAB Comprehensive Cancer Center, 5% to the Mitchell Cancer Center, and 1% to the Alabama Department of Public Health for tobacco cessation.
• Local cigarette taxes cannot be increased; existing pre-2004 local taxes may remain, but no new local taxes on cigarettes or tobacco may be levied.
• Effective date: the first day of the third month following passage and approval by the Governor.

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