The US state of Alabama plans to impose an additional tax of 10 cents per milliliter on “consumer vape products” sold in the state. The proceeds will be distributed to state funds, counties and municipalities, and retailers will be required to apply for $150 licenses and submit monthly reports to the tax bureau to combat illegal vaping sales.
Key points:
1. The Alabama House of Representatives passed HB529, a tax of 10 cents per milliliter on e-cigarette products.
2. Tax revenue is distributed to state funds, counties and municipalities, and retailers are required to apply for a $150 license.
3. Retailers are required to submit monthly reports, violators will be penalized, and untaxed products may be confiscated.
Alabama proposes tax on vapes 10 cents per milliliter
According to Alreporter on April 10. The Fundraising and General Fund Committee of the Alabama House of Representatives passed HB529, proposed by state Assemblyman David Faulkner, which plans to impose an additional tax on “consumer vape products” sold in the state.
According to Alabama law, a consumable vape product is “any vaping solution or other material containing nicotine that will be consumed when used as a vape product.” Bill proposes an additional tax of 10 cents per milliliter on retail sales of such products. Which consumers would pay on top of the existing sales tax. The bill states that any existing local taxes on vape products will be repealed and replaced.
The bill detailed that 50% of the proceeds from the tax would go to the state general fund. 25% would be distributed to the state counties by population, and the remaining 25% would be distributed to Alabama cities and towns by population. Faulkner said at least 32 states already have similar taxes on vape products.
The bill also requires retailers to submit monthly reports to the Alabama Department of Revenue, and violators will be prosecuted by the attorney general and barred from continuing business. Untaxed vape products may be confiscated and disposed of by the Alabama Liquor and Beverage Authority or other law enforcement officials.
Violators will be penalized, and untaxed products may be confiscated
In addition, HB529 requires retailers to apply for a $150 license to sell consumable vape products. Faulkner said the penalty for failing to obtain such a license is the same as for an unregistered tobacco seller not getting the proper license. The license fee will be used by the Alabama Liquor and Beverage Authority to enforce and combat the sale of illegal vape products.
While it is estimated that 80 to 85% of in-store sales of vape products are illegal and there is no funding or mechanism to enforce them. Faulkner said the bill would authorize the Alabama Liquor and Beverage Authority to create a new licensing fee for on-site enforcement.
HB529 now moves to the House of Representatives for further consideration.
