SB401 Alabama 2014 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Co-Sponsors

Rusty GloverGreg J. Reed

Session

Regular Session 2014

Title

Tobacco products, definitions revised, archaic language removed, invoices, penalties, Sec. 40-25-16.1 added; Secs. 40-25-1, 40-25-2, 40-25-4, 40-25-7, 40-25-8, 40-25-9, 40-25-13, 40-25-20, 40-2A-10 am'd.

Summary

SB401 updates Alabama tobacco tax rules by redefining terms, reclassifying cigars, and strengthening invoicing, reporting, and enforcement.

What This Bill Does

It revises definitions ( wholesale dealer, retail dealer, semijobber) and separates little cigars from filtered cigars, removing obsolete cigar tax categories. It eliminates the old stamp-cancellation requirement and requires the tax amount to be shown separately on invoices; retailers must keep 90 days of invoices and use computer- or machine-generated invoices. It expands penalties and changes confiscation procedures, allowing seizure of tobacco for failures to maintain invoices or when products are stored by non-permitted or non-registered entities, and adds penalties for reusing or refilling tobacco containers. It creates new reporting duties and a public listing: wholesalers, jobbers, semijobbers, retailers, importers must report monthly; the Department will host a website listing all permitted and registered distributors, with purchases from unlisted entities subject to confiscation. It broadens the Department of Revenue’s enforcement capabilities with additional reporting, audits, and penalties.

Who It Affects

• Wholesale dealers and jobbers: definitions updated and subject to monthly reporting, separate-invoice tax display, and penalties for noncompliance.
• Retail dealers and semijobbers: must retain 90 days of invoices, use computer-generated invoices, have tax shown separately on invoices, and face penalties for recordkeeping failures.
• Distributors and importers: required to report monthly activity and be listed on a Department of Revenue website; risk confiscation for dealing with unlisted entities.
• Non-permitted or non-registered storage or distribution entities: higher risk of confiscation of tobacco products.
• Department of Revenue and law enforcement: greater authority to enforce recordkeeping, confiscation, and reporting requirements.

Key Provisions

• Amends Sections 40-25-1, 40-25-2, 40-25-4, 40-25-7, 40-25-8, 40-25-9, 40-25-13, 40-25-20, and 40-2A-10 and adds Section 40-25-16.1; defines wholesale dealer, retail dealer, and semijobber; separates little cigars from filtered cigars and eliminates certain cigar tax categories.
• Eliminates archaic language requiring distributors to cancel stamps once affixed; requires the state tobacco tax amount to be separately stated on invoices.
• Requires retailers to maintain 90 days of invoices and to use computer- or machine-generated invoices, with the seller’s name on invoices.
• Expands penalties for failing to maintain records; revises confiscation procedures and allows confiscation of tobacco if invoices are not maintained or if products are stored by non-permitted or non-registered entities; adds penalties for reusing or refilling tobacco containers.
• Strengthens confiscation and seizure provisions for unstamped or improperly documented tobacco and related goods, including potential seizure of vehicles used for sale of unstamped products.
• Adds new reporting and web site listing requirements (40-25-16.1): monthly reports from wholesalers, jobbers, semijobbers, retailers, and importers; a public list of permitted or registered tobacco distributors; purchases from unlisted entities subject to confiscation.
• Effective date: the act becomes law on October 1, 2014.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tobacco