HB10 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

First Special Session 2015

Title

Cigarettes, tax increased, discount on tobacco tax stamps lowered, Indian tribal refunds, further provided for, tax on vapor products, distrib. for Medicaid, Sec. 40-25-2.2 added; Secs. 40-23-1, 40-23-35, 40-25-2, 40-25-5 am'd.

Summary

HB10 would raise Alabama's cigarette tax, reduce the tobacco tax stamp discount, and direct the extra revenue to the General Fund.

What This Bill Does

Raises the cigarette tax per pack from 0.425 to 0.675, with the tax collected and distributed by the state. Cuts the tobacco tax stamp discount for wholesalers and jobbers from 7.5% to 4.75%. Maintains stamp-based tax collection and outlines how stamps are issued, affixed, and enforced, including local tobacco taxes. Requires revenue from the higher cigarette tax to go into the State General Fund and sets an effective date of October 1, 2015.

Who It Affects

• Consumers who buy cigarettes in Alabama would pay higher prices due to the increased cigarette excise tax.
• Wholesalers, jobbers, retailers, and the Alabama Department of Revenue would handle stamp distribution, collection of the tax, and enforcement of the stamp requirements.

Key Provisions

• Increases the cigarette tax per pack from $0.425 to $0.675 and provides for its state distribution.
• Reduces the tobacco tax stamp discount for wholesalers and jobbers from 7.5% to 4.75%.
• Authorizes and directs the Department of Revenue to prepare and distribute tobacco stamps; imposes stamp-based collection and enforcement rules, including local collection through stamps.
• Requires all revenue from the increased cigarette tax to be deposited into the State General Fund.
• Effective date: October 1, 2015.

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