HB107 Alabama 2012 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2012

Title

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

Summary

HB107 would dramatically raise Alabama's cigarette tax and send the extra money to the State General Fund, while restricting local cigarette taxes.

What This Bill Does

If passed, the bill increases the cigarette tax from about 42.5 cents per pack to about $1.425 per pack. It keeps the tax collection through a license/privilege tax and a stamp system, requiring sellers to collect the tax from customers and affix stamps to tobacco products. All new increased tax revenue would go to the State General Fund, and the bill restricts local cigarette taxes, allowing only those pre-dating a 2004 rule to continue. The act becomes law on the first day of the third month after it passes and is approved.

Who It Affects

• Consumers who buy cigarettes: face a higher price per pack due to the increased tax.
• Retailers, wholesalers, and distributors of tobacco: must collect the higher tax from customers and use the stamp system to prove payment.
• Local governments: may not levy new local cigarette taxes after the bill, with limited exceptions for pre-2004 taxes; local collection would still use the state stamp framework.
• State budget and public funds: increased cigarette tax revenue would be deposited into the State General Fund.

Key Provisions

• Amends Section 40-25-2 to raise the cigarette tax from $0.425 per pack to $1.425 per pack.
• Increases revenue collected from tobacco taxes to be deposited into the State General Fund (not local funds).
• Maintains a license/privilege tax and stamp-based collection system for tobacco products, with retailers required to add the tax to prices and affix stamps.
• Confirms that the new tax is exclusive and replaces most local tobacco taxes, allowing only pre-2004 local taxes to remain operative.
• Local cigarette taxes must be collected via the state stamp mechanism, and local collection may be contracted to others as needed.
• Effective date: the act becomes law on the first day of the third month following passage and governor 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

Taxation