Alabama: Mobile City Approves Tax on Vaping Products

The Mobile City Council has passed an ordinance to locally collect a new statewide tax on vaping products. This decision follows the passage of a state bill that imposes a 10-cent-per-milliliter charge on these items. Municipalities across Alabama were given the option to either collect this tax themselves or allow the state to collect and then disburse the funds.

Mobile Finance Director Scott Collins explained that the new tax is not scheduled to go into effect until October 2026. He stated that it is currently too early to estimate the potential revenue this will generate for the city. “We’re hoping that the local businesses who sell will allow us to go back and identify what those taxes are,” Collins said. He also noted that the city retains the flexibility to rescind the ordinance if it proves problematic.

“If we learn over the next year that there’s double taxation, there’s something unfair to the resident or local business, the city can go back and undo this if it chooses to do so,” Collins added. While he anticipates some revenue from the tax, he does not expect it to be a major income source for the city. The ordinance positions Mobile to directly manage the funds collected from vape sales within its jurisdiction once the state tax is implemented.

• Read more: Alabama Cities Begin Imposing Local Taxes on Vape Products
• News source: Mobile City Council passes vape tax ordinance

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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.

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