HB9 Alabama 2012 1st Special Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

First Special Session 2012

Title

House of Representatives, redistricting pursuant to 2010 federal census, venue for legal action challenging to be in Montgomery County Circuit Court, official maps of districts retained in Secretary of State Office and printed with Acts, use for legislative intent, Sec. 29-1-1.2 repealed; Sec. 29-1-1.2 added

Summary

HB9 would raise Alabama's cigarette tax and dedicate the new revenue to Medicaid.

What This Bill Does

The bill would raise the cigarette tax and set new license taxes for tobacco products based on sales volume. It creates a stamp-based system where retailers must collect the tax, affix stamps, and treat the tax as owed by the purchaser to the seller. It also directs all revenue from the increase to the State General Fund for Medicaid, with certain rules about local cigarette taxes and an effective date a few months after passage.

Who It Affects

• Tobacco product sellers, distributors, and retailers in Alabama would be responsible for collecting the higher tax, applying stamps, and remitting revenue according to the new schedule.
• Alabama residents who purchase tobacco products would pay higher prices due to the increased cigarette tax, and the increased revenue would support the Medicaid program.

Key Provisions

• Increase the cigarette tax per pack from the stated amount to a higher level (from $.42.5 to $1.42.5 per pack) and adjust the tax structure for other tobacco products.
• Establish license or privilege taxes on tobacco products based on volume sold, with detailed rate schedules for cigars, cigarettes, smoking tobacco, chewing tobacco, and snuff.
• Implement a stamp-based tax collection system requiring stamps to be affixed to products and collected at the point of sale; retailers must pass the tax to consumers and cannot omit collection.
• All revenue from the increased tax is deposited into the State General Fund and allocated to the Medicaid Program.
• The act becomes effective on the first day of the third month after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

House of Representatives