HB572 Alabama 2015 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2015

Title

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

Summary

HB572 would raise Alabama's cigarette tax from 0.425 to 0.675 per pack and direct the new revenue to the State General Fund.

What This Bill Does

It increases the cigarette tax rate to 33.75 mills per cigarette (about $0.675 per pack of 20). The bill maintains the existing stamp-based collection system and requires tax to be collected at the point of sale. Revenue from the increase goes into the State General Fund, and the changes are made to be exclusive of local cigarette taxes, with existing pre-2004 local taxes allowed to remain but no new local cigarette taxes permitted.

Who It Affects

• Cigarette buyers in Alabama, who would pay higher prices per pack due to the increased tax.
• Retailers/wholesalers and local tax authorities, who collect/remit the tax under the stamp system and manage distribution of the new revenue (to the State General Fund) and adhere to local tax rules.

Key Provisions

• Cigarette tax increased from 21.25 mills per cigarette to 33.75 mills per cigarette (equivalent to $0.425 to $0.675 per pack of 20).
• All revenue from the increased tax is deposited into the State General Fund.
• The tax remains collected via stamps; the tax is designed to be collected at the point of sale and passed to the state.
• The increased tax is exclusive of local tobacco taxes; existing pre-2004 local taxes may remain, but no new local cigarette taxes may be enacted.
• Effective date: the first day of the third month after the bill becomes law (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