Bill > HB552

This bill establishes a new 5% county excise tax in Covington County, Alabama, on the sale of vaping devices, vapor products, alternative nicotine products, and psychoactive cannabinoids. The bill provides detailed definitions for these terms, including specifying that "alternative nicotine products" are any nicotine-containing items that can be consumed through various methods, and "psychoactive cannabinoids" include specific types of THC derived from hemp. The tax will be collected by dealers, distributors, and retailers, who are required to add the tax to the sales price and remit it to the county. Businesses that fail to collect or properly remit the tax can be subject to a civil penalty of at least $250 per offense, with all collected penalties and tax proceeds to be deposited into the county's general fund. The county commission has the authority to establish the start date for tax remittance and can assess interest on delinquent taxes. The tax will become effective on October 1, 2025, giving businesses time to prepare for the new regulation. The bill aims to generate additional revenue for Covington County while regulating the sale of these products.

Government Affairs

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