Muscle Shoals, Alabama, Passes New Tax on Vape Products
The Muscle Shoals City Council has unanimously passed a new tax on all vape products sold, distributed, or delivered within the city and its police jurisdiction. The tax, which could go into effect by the end of 2025, is intended to generate revenue for the city’s general fund to support operations like infrastructure and roads.
The tax rate will be 10 cents per milliliter for businesses operating inside the city limits and 5 cents per milliliter for those within the police jurisdiction. Muscle Shoals Mayor Mike Lockhart explained that this move allows the city to collect its own revenue directly, rather than waiting for a portion of a state-mandated tax set to begin in 2026. “For us to engage and get our fair share, we needed to go ahead and do this now,” Mayor Lockhart said.
- The state of Alabama passed a vape product tax earlier this year that will go into effect in October 2026.
He emphasized that the decision was based on two main points: treating vape products similarly to tobacco and alcohol for taxation purposes, and ensuring the city collects taxes on sales within its jurisdiction. The tax will not go into effect until all businesses have been given at least one month’s notice.
Reactions from local smoke shop workers were mixed. Some expressed indifference, while others voiced disappointment, with one owner stating he might close his shop and move if sales plummet, citing existing restrictions on products. The new tax adds another layer of regulation for vape retailers in the area.
- Read more: Dothan, Alabama to Implement New Vape Tax in December
- News source: Muscle Shoals city leaders pass tax on vape products
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