HB39 Alabama 2014 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2014

Title

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

Summary

HB39 would raise the cigarette tax to 0.75 per pack (37.5 mills per cigarette) and put the new revenue into the State General Fund.

What This Bill Does

It increases the tobacco tax by setting the cigarette tax at 37.5 mills per cigarette, which equals about $0.75 per pack. The revenue from the higher tax would go to the State General Fund. It restricts local cigarette taxes, allowing only pre-existing local taxes from before May 18, 2004 to stay and prohibiting new local cigarette taxes. The act becomes effective on the first day of the third month after it passes and is signed into law, with collectors using a stamp system to track payments.

Who It Affects

• Cigarette buyers and smokers in Alabama: they would pay more for each pack of cigarettes.
• Tobacco product retailers, wholesalers, and distributors, and state/local governments: retailers must collect the higher tax and use a stamp system to remit it; revenue goes to the State General Fund; local cigarette taxes cannot be increased after the bill (existing pre-2004 taxes may remain).

Key Provisions

• Section 1 amends 40-25-2 to increase license/privilege taxes on tobacco products, including cigarettes.
• Cigarettes are taxed at 37.5 mills per cigarette (about $0.75 per pack).
• All revenue from the increased tax is deposited into the State General Fund.
• No new local cigarette taxes may be enacted; existing local taxes enacted before May 18, 2004 may remain operative.
• Local taxes are collected via stamps; the act outlines stamp denominations or monthly reporting options for tax collection, and sets an effective date for the act.

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