Tax on cigar wrappers.
(a) For the purposes of this section, the following terms shall have the
respective meanings ascribed to them by this section:
(1) CIGAR WRAP. An individual tobacco wrapper that is made wholly or in
part from tobacco, including reconstituted tobacco, whether in the form
of tobacco leaf, sheet, or tube, if the wrap is designed to be offered
to or purchased by a consumer.
(2) COMMISSIONER. The Commissioner of the Department of Revenue of the
State of Alabama.
(3) DEPARTMENT. The Department of Revenue of the State of Alabama.
(4) NET TAX PROCEEDS. The entire proceeds from the tax herein levied less
costs of collection, refunds, grants, and credits as may be authorized by law.
(5) PERSON. Individuals, firms, corporations, partnerships, companies,
or other agencies, associations, incorporated or otherwise, singular or plural.
(6) STATE. The State of Alabama.
(7) WHOLESALE SALE. A sale of tangible personal property by wholesalers
to licensed retail merchants, jobbers, dealers, or other wholesalers for
resale and shall not include a sale by wholesalers to users or consumers,
not for resale.
(b) There is hereby levied a tax upon all cigar wrappers manufactured using
tobacco sold at wholesale in this state or imported into this state for
use, consumption, or sale at retail. The tax shall be levied upon each
package in the following amounts: Weighing not more than one and one-eighth
ounces, four cents ($.04); over one and one-eighth ounces, not exceeding
two ounces, ten cents ($.10); over two ounces, not exceeding three ounces,
sixteen cents ($.16); over three ounces, not exceeding four ounces, twenty-one
cents ($.21); and six cents ($.06) additional tax for each ounce or fractional
part thereof over four ounces.
(c) Notwithstanding subsection (b), nothing in this section shall be construed
to apply to a cigar manufacturer using wrappers made from tobacco applying
those wrappers on a finished cigar for sale at retail.
(d) Before any person engages in the business of selling any of the items
on which the tax levied by this section has not been paid to the department,
the person shall make application to the department upon forms prepared
by the department for a license. The license shall be a condition precedent
to engaging or continuing in the business of selling the items taxed under
(e) On or before the 20th day of each month, each person on whom the tax
levied by this chapter is imposed shall render to the department on forms
prescribed by the department a true and correct statement showing the
amounts utilized in the measurement of the tax and all other information
as the department may require and shall pay to the department the amount
of tax shown due.
(f) Any person subject to this section who shall fail to make any report
required of them by the department or shall fail to keep any of the records
required herein shall be guilty of a Class B misdemeanor. Each month of
such failure shall constitute a separate offense.
(g) The tax imposed by this section shall be in addition to all other licenses
and taxes levied by law as a condition precedent to engaging in any business
(h) Any taxpayer who shall violate this section may be restrained from
continuing in business, and the proper prosecution shall be instituted
in the name of the State of Alabama by its Attorney General or by the
counsel of the department until such person shall have complied with this chapter.
(i) The department shall enforce this section and may prescribe, adopt,
promulgate, and enforce rules relating to any matter or thing pertaining
to the administration and enforcement of this section and the collection
of taxes, penalties, and interest imposed by this section.
(j) The department for good cause may grant up to a 30-day extension for
the time for making any return required under this section.
(k) All revenue collected under the provisions of this section shall be
paid to the department and shall be distributed as is provided for the
distribution of funds received from tobacco products other than cigarettes
in Section 40-25-23(3).
(l) The amount of money as shall be appropriated for each fiscal year by
the Legislature to the department with which to pay the salaries and the
cost of operation and management of the department shall be deducted,
as a first charge thereon, from the taxes collected under the provisions
of this section; provided, however, that the expenditure of such sum so
appropriated shall be budgeted and allotted pursuant to Sections 41-4-80
to 41-4-96, inclusive, and limited to the amount appropriated to defray
the expenses of operating the department for each fiscal year.
(Act 2012-425, §1.)