House Bill 663 Alabama 2026 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

2026 Regular Session

Title

Consumable vapor products; existing excise tax further calculated based on amount of nicotine; product labeling requirements, provided

Summary

HB663 changes how consumable vapor products are taxed, adds nicotine labeling requirements, and sets penalties for labeling violations.

What This Bill Does

Starting Oct 1, 2026, the excise tax is based on nicotine content: $0.10 per milliliter for products with more than 6 mg/mL, $0.05 per milliliter for 6 mg/mL or less, and $0.10 per milliliter if a required label is missing. Each e-liquid must label the nicotine amount per milliliter and the total liquid volume. The Alcoholic Beverage Control Board would assess fines for labeling violations by manufacturers and retailers, and could revoke a retailer's permit for repeat offenses. The bill also updates tax collection rules and local licensing provisions, and provides an export exemption when proof of export is shown.

Who It Affects

• E-liquid manufacturers and wholesalers/importers: must label nicotine content and total volume; pay the nicotine-based tax; face fines for unlabeled products.
• Retailers with Alcoholic Beverage Control permits: face escalating penalties and possible permit revocation for labeling violations.

Key Provisions

• Tax based on nicotine content: 0.10 per mL for >6 mg/mL; 0.05 per mL for ≤6 mg/mL; 0.10 per mL if label is missing.
• Labeling requirement: every e-liquid must show nicotine mg/mL and total volume on the label.
• Penalties: $1,000 per day for unlabeled products; retailer penalties: $1,000 (first), $2,500 (second), $5,000 (third+), plus permit revocation.
• Effective date Oct 1, 2026; export of consumable vapor products is exempt with proof of export; local licenses based on volume may be adjusted or voided as specified.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 1, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages & Tobacco