HB45 Alabama 2015 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2015

Title

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

Summary

The bill raises Alabama's cigarette tax to 75 cents per pack and updates the tobacco tax structure, directing the extra revenue to the General Fund.

What This Bill Does

Increases the cigarette tax from about 42.5 cents per pack to 75 cents per pack, with the new revenue deposited into the State General Fund. Amends the tobacco tax law to establish license or privilege taxes on tobacco products based on sales volume, setting specific rates for products like cigars, cigarettes, smoking tobacco, chewing tobacco, and snuff. Maintains a stamp-based collection system where sellers must collect the tax, affix stamps to packaging, and follow enforcement rules, including penalties for noncompliance. Enacts local tax provisions that the state tax is exclusive of new local tobacco taxes; pre-existing local taxes may remain, but no new local tobacco taxes may be imposed after a certain date, and local collection can be contracted.

Who It Affects

• Consumers who purchase cigarettes in Alabama, who would pay a higher price per pack due to the increased state cigarette tax.
• Retailers, wholesalers, distributors, and manufacturers of tobacco products in Alabama, who must collect the tax from purchasers, apply stamps, comply with licensing requirements, and adhere to reporting and enforcement provisions.

Key Provisions

• Cigarette tax increased to 0.75 per pack; the added revenue goes to the State General Fund.
• Section 40-25-2 amended to impose license or privilege taxes on tobacco products based on sale volume, with product-specific rates for items such as cigars, cigarettes, smoking tobacco, chewing tobacco, and snuff.
• Tax collection and stamping requirements: sellers must collect the tax, add it to the sales price, affix stamps to packaging or boxes, and follow rules for stamping and reporting; the Commissioner issues stamps and can permit alternative reporting methods if stamping is not economical.
• Local tobacco taxes: increased state tax is exclusive of local taxes; pre-2004 local taxes may remain, but no new local tobacco taxes may be levied; local collection can be handled by another entity if arranged.
• Revenue allocation and effective date: all increased revenue is deposited into the State General Fund; the act becomes effective on the first day of the third month after 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