HB440 Alabama 2022 Session

Under existing law, a person selling, receiving, or distributing tobacco products in this state for resale is required to file a report with the Department of Revenue

Under existing law, a person transporting or distributing untaxed or unstamped tobacco products within this state is required to have an active tobacco permit or a transporter permit issued by the department

Under existing law, unstamped and untaxed tobacco products found within the state for more than two hours in possession of a retailer may be seized by the department or by a law enforcement officer

This bill would deem the sale of tobacco products when the purchaser uses a sales tax number to purchase the products to be a purchase for resale and would require the seller to obtain a tobacco account and report the sales monthly. The bill would also provide for penalties for non-registered sellers who fail to obtain a tobacco tax account

This bill would also authorize civil and criminal penalties relating to transporting or distributing unstamped or untaxed tobacco products by any person without an active tobacco permit or transporters permit, including seizure of the products and the vehicle used to transport the products

Amendment 621 of the Constitution of Alabama of 1901, as amended by Amendment 890, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

Relating to the sale and transportation of tobacco products; to amend Section 40-25-16.1, Code of Alabama 1975, to require sellers making sales of tobacco products to purchasers using sales tax numbers to obtain a tobacco account and report the sales on the monthly tobacco sales for resale report; to provide for penalties for non-registered tobacco sellers who fail to obtain a tobacco account; to add Sections 40-25-8.1, 40-25-8.2, and 40-25-26.1 to the Code of Alabama 1975, to provide civil and criminal penalties for transporting unstamped or untaxed tobacco products within the state without an active tobacco permit or transporters permit; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, as amended by Amendment 890, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901 as amended.