Bill > HB357

This bill amends Alabama's tobacco taxation laws to introduce a new category of tobacco products called "heated tobacco products" and "cigarettes intended to be heated", which are devices that heat tobacco to produce an inhalable aerosol without burning the tobacco. The bill establishes specific tax rates for these new product categories, setting a tax of $0.017 per single-use consumable unit for heated tobacco products and per heated cigarette, effective November 1, 2025. The legislation also updates definitions across multiple sections of the state tax code to include these new product types, ensuring they are subject to similar regulatory requirements as traditional tobacco products. This includes provisions for how these products must be stamped, transported, and reported by wholesalers and retailers, and adds them to existing contraband and penalty frameworks. Additionally, the bill allows local counties and municipalities that already have tobacco taxes to levy comparable taxes on heated tobacco products, typically at half the state tax rate. The comprehensive changes aim to bring emerging tobacco technologies under the state's existing tax and regulatory structure, ensuring consistent treatment and revenue collection for these new product types.

Budget and Finance

https://alison.legislature.state.al.us/bill-search