HB440 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2022
Title: Tobacco products, tax, enforcement by Revenue Dept and law enforcement, tobacco account required, transporting when unstamped and untaxed, civil penalites by Dept., criminal penalties, forfeiture of motor vehicles authorized, Secs. 40-25-8.1, 40-25-8.2, 40-25-26.1 added; Sec. 40-25-16.1 am'd.
Summary: HB440 would require tobacco sellers to register for a tobacco account, report monthly sales (including sales to buyers using sales tax numbers as resale), and impose penalties and seizures on transporting untaxed or unstamped tobacco without the proper permits.
What This Bill Does
If enacted, it requires tobacco sellers to obtain a tobacco account and report monthly sales, treating sales to purchasers using a sales tax number as resale. It creates civil and criminal penalties for transporting or distributing unstamped or untaxed tobacco without an active tobacco or transporter permit, including seizure of the products and any vehicle used. It also requires proof of destination for transported tobacco, imposes penalties for noncompliance, allows the Department of Revenue to adopt implementing rules, and takes effect January 1, 2023; personal-use transport is exempt and interstate shipments are treated differently.

Who It Affects
Wholesalers, jobbers, semijobbers, retailers, importers, and distributors of tobacco for resale: must obtain a tobacco account and file monthly reports; non-registration carries escalating civil penalties.
Purchasers using a sales tax number to buy tobacco: their purchases are deemed purchases for resale, triggering reporting obligations.
Transporters and drivers of tobacco products: must have an active tobacco or transporter permit; face civil/criminal penalties and potential seizure of products and vehicles if they transport unstamped or untaxed tobacco without proper permits.
Law enforcement and the Alabama Department of Revenue: tasked with enforcing the new requirements, penalties, and seizures.
Individuals transporting tobacco for personal consumption: generally exempt from certain provisions.

Key Provisions
Amendment to 40-25-16.1 requiring wholesalers, retailers, and others selling for resale to file monthly reports (1st-20th of each month) and to treat sales to purchasers using a sales tax number as resale; establishes penalties for non-registered sellers (warning, then civil penalties of $100 on the second violation, then $100 times total violations on subsequent violations).
Adds 40-25-8.1 requiring an active tobacco or transporter permit to transport untaxed or unstamped tobacco; allows seizure of products and the transport vehicle; creates Class A misdemeanor penalties and Class C felony penalties for large quantities or repeat offenses.
Adds 40-25-8.2 requiring proof of destination for transported tobacco; civil penalties for failing to provide documentation; not applicable to interstate shipments; violations can be Class A misdemeanor or Class C felony for repeated offenses.
Adds 40-25-26.1 authorizing the Department of Revenue to adopt rules to implement and administer the chapter.
Requires a Department of Revenue website listing registered tobacco entities; purchases from unlisted entities can be subject to confiscation.
Effective January 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Revenue Department