Alabama Cities Begin Imposing Local Taxes on Vape Products
Several cities across Alabama are moving to impose a new local tax on vaping products, a measure enabled by a recent state law that also requires businesses to obtain permits for vape sales. Municipalities have until October 1st to decide whether to enact their own local tax of 10 cents for every milliliter of vaping liquid sold.
If a city chooses to implement its own tax, it can retain all the revenue generated. If a city does not enact a local tax, a state-level levy will begin on October 1, 2026, with the revenue being distributed based on population, which local officials say would give them only a fraction of what they could collect directly.
Ford Handley, city administrator for Orange Beach, described the move as a “fairness issue,” stating, “We look at the vape products very similar to tobacco. And, if tobacco is being taxed this way, then the vape needs to be taxed the same way.” Cities like Dothan, Muscle Shoals, and Decatur are also assessing the new tax.
Lori Rossetti, revenue manager for the city of Decatur, emphasized that the local tax simply allows the city to collect the funds directly rather than sharing in state proceeds. “We can do more work for beautification, to add facilities for our people, so we can do more roadwork… to hopefully better benefit the citizens of Decatur,” she explained. The local tax option provides a direct financial benefit to communities that choose to implement it.
- Read more:
Decatur, Alabama, City Council Approves New Vape Tax
Muscle Shoals, Alabama, Passes New Tax on Vape Products
Dothan, Alabama to Implement New Vape Tax in December
Alabama: Tuscaloosa Considers Local Vape Tax Before State Deadline
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