Alabama Imposes 10-Cent Per Milliliter Tax on Vape Products

The Alabama House Ways and Means General Fund Committee has passed HB529, a bill that introduces a 10-cent per milliliter tax on the retail sale of consumable vapor products in the state. This tax will be applied on top of the existing Alabama sales tax, with the consumer responsible for covering the additional cost.

The legislation aims to regulate the sale of nicotine liquid solutions and other consumable vape products. The revenue generated from the tax will be allocated to the State General Fund (50%), counties (25%), and municipalities (25%), based on population. The bill also includes provisions to enforce compliance, including a $150 permit fee for retailers and penalties for those selling illegal vape products.

Key Points of HB529:

Tax Rate: 10 cents per milliliter on consumable vapor products.
Revenue Allocation: 50% to the State General Fund, 25% to counties, and 25% to municipalities.
Retailer Compliance: $150 permit required for selling vape products.
Illegal Vape Products: Penalties for selling untaxed or illegal products.

With its approval from the committee, HB529 will now move forward to the House floor for further consideration.

News source: House Ways and Means Committee passes bill to tax vape products

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.