Senate Bill 134 Alabama 2026 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

2026 Regular Session

Title

Taxation; tobacco interstate warehouser permits required, penalties imposed for violations

Summary

SB134 creates an interstate tobacco warehouser permit system in Alabama, expands stamping and reporting requirements, and strengthens penalties to curb untaxed tobacco movement.

What This Bill Does

Defines an 'interstate warehouser' and requires such entities to obtain a Department of Revenue permit before shipping tobacco products into Alabama; the permit requires the applicant to show licenses from at least four other states and to supply financial and business information. Requires an annual permit with a $2,000 initial fee and a $500 renewal fee, makes the permit non-transferable, and allows revocation for specified failures or misconduct; an interstate warehouser may only sell to Alabama licensed wholesale dealers for resale. Gives wholesalers, jobbers, and manufacturers stamping authority under tightened rules (manufacturers may stamp for trademark purposes, promotions, or test-marketing; other wholesalers must be licensed to affix stamps); mandates records and reporting related to stamping. Requires interstate warehousers to keep detailed records of sales, purchase orders, invoices, and delivery receipts when selling to Alabama permitted wholesale dealers; the Department may examine these records and impose penalties for noncompliance. Creates a public listing on the Department of Revenue website of qualified interstate warehousers and other tobacco entities; purchases from unlisted entities may be confiscated. Strengthens penalties for noncompliance, including seizure or destruction of contraband goods, penalties per article for untamped products, and increased penalties for repeated violations; penalties also apply to improper transportation and failure to obtain required permits; the act becomes effective October 1, 2026.

Who It Affects

• Interstate warehousers, wholesalers, jobbers, semijobbers, retailers, and importers who buy, store, or sell tobacco in Alabama and may be involved in interstate shipments; they must obtain the new interstate warehouser permit, comply with monthly reporting, and follow stamping/recordkeeping rules.
• Alabama tobacco sellers and enforcement entities (wholesalers, distributors, retailers, manufacturers, and the Department of Revenue and law enforcement) who administer stamping requirements, monitor compliance, conduct inspections, and enforce penalties and potential license actions.

Key Provisions

• Defines 'interstate warehouser' as a person who buys tobacco directly from a manufacturer or affiliate and sells to a permitted Alabama wholesale dealer for resale.
• Adds §40-25-15.1 requiring an interstate warehouser permit before shipping into Alabama; initial application must include licenses from at least four other states, a Certificate of Authority if not domestically registered, names of Alabama permitted wholesalers, contracts, most recent audited financial statements, and a $2,000 initial fee with a $500 annual renewal fee.
• Gives the Department the authority to refuse a permit for incomplete/inaccurate information, prior fraud or revocation, unpaid taxes, or other good cause; permits are non-transferable and revocation is possible for violations.
• Notwithstanding other laws, restricts stamping to wholesalers/distributors who buy from manufacturers or interstate warehousers; manufacturers may stamp for trademark registrations, promotions, or test-marketing.
• Requires interstate warehousers to maintain records of sales and deliveries to Alabama wholesalers and to provide them for Department inspection; noncompliance may trigger penalties and potential confiscation.
• Establishes a public website listing all qualified entities; purchases from unlisted entities are subject to confiscation and related penalties; imposes other penalties for violations, including fines and possible criminal penalties depending on the severity and frequency of violations.
• Sets penalties for untamped or improperly stamped products, including per-article fines ($25 minimum first violation; $250 second; $500 third and subsequent), and higher penalties for repeated offenses; establishes additional penalties for transporting or possessing untaxed tobacco and potential criminal charges for large quantities; effective date October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue