Bill > HB529

This bill establishes a new excise tax of ten cents ($0.10) per milliliter on consumable vapor products sold wholesale in Alabama, effective October 1, 2026. The tax applies to vapor products imported into the state for retail use or consumption, but not to sales between licensed wholesalers. The bill defines key terms like "consumable vapor product" and "person" and provides that the tax is intended to be paid ultimately by consumers. Revenue from the tax will be distributed quarterly, with 50% going to the State General Fund, 25% to counties based on population, and 25% to municipalities based on population. Counties and municipalities that already levy a local tax on vapor products will be ineligible for these distributions. The bill requires businesses selling vapor products to obtain a license from the Alabama Department of Revenue, maintain detailed records, and file monthly tax returns. Violations can result in penalties, including potential misdemeanor charges and business restrictions. The legislation also modifies existing laws related to electronic nicotine delivery systems, including updating permit requirements and certification processes for manufacturers. Businesses will need to comply with new FDA regulations and obtain proper certifications to sell vapor products in the state.

Budget and Finance, Business and Industry

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