HB9 Alabama 2012 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2012

Title

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

Summary

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

What This Bill Does

It increases the tax on cigarettes from about 42.5 cents per pack to about $1.43 per pack. The extra money collected would be deposited into the State General Fund and allocated to the Medicaid Program. The tax would be collected using stamps, with sellers required to add the tax to the sale price and pass it to consumers, while existing local tobacco taxes and the broader tax structure for other tobacco products are preserved with certain limitations on new local taxes.

Who It Affects

• Tobacco product sellers, distributors, wholesalers, and retailers in Alabama, who would collect the higher cigarette tax from buyers, use stamps to show payment, and pass the cost to consumers.
• The Alabama Medicaid program and its beneficiaries, who would receive the increased revenue to fund Medicaid services.

Key Provisions

• Increase the cigarette tax rate from about 42.5 cents per pack to about $1.43 per pack.
• All revenue from the increased cigarette tax would be deposited into the State General Fund and allocated to the Medicaid Program.
• Taxes would be collected via stamps; wholesalers and retailers must collect the tax and add it to the sale price, with stamps affixed to tobacco product packaging as required.
• No new local cigarette or tobacco taxes may be enacted beyond those in effect on May 18, 2004; existing local taxes may remain, but no additional ones may be created.
• The act becomes effective on the first day of the third month after it passes and is 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