Who liable for tax; amount; local tax or fee.
(a) In addition to all other taxes of every kind now imposed by law, every
person, firm, corporation, club, or association, within the State of Alabama,
who sells or stores or receives for the purpose of distribution to any
person, firm, corporation, club, or association within the State of Alabama,
cigars, cheroots, stogies, cigarettes, smoking tobacco, chewing tobacco,
snuff, or any substitute therefor, either or all, shall pay to the State
of Alabama for state purposes only a license or privilege tax which shall
be measured by and graduated in accordance with the volume of sales of
such person, firm, corporation, club, or association in Alabama. There
is hereby levied license or privilege taxes on articles containing tobacco
enumerated in this article in the following amounts:
(1) LITTLE CIGARS. Upon cigars of all descriptions, including filtered
cigars, made of tobacco, or any substitute therefor, and weighing not
more than three pounds per 1,000, $.04 for each ten cigars, or fractional
(2) FILTERED CIGARS. Upon filtered cigars that have a cellulose acetate
or similar integrated filter, made of tobacco, or any substitute therefor,
and weighing more than three pounds per 1,000, $0.015 for each filtered cigar.
(3) CHEROOTS, STOGIES, CIGARS, ETC. Upon all other cigars of any descriptions
made of tobacco, or any substitute therefor, $40.50 per thousand cigars,
or $0.0405 each.
(4) CIGARETTES. Upon all cigarettes made of tobacco, or any substitute
therefor, 33.75 mills on each such cigarette.
(5) SMOKING TOBACCO. Upon all smoking tobacco, including granulated, plug
cut, crimp cut, ready rubbed, and other kinds and forms of tobacco prepared
in such manner as to be suitable for smoking in a pipe or cigarette, upon
each package: Weighing not more than one and one-eighth ounces, tax $.04;
over one and one-eighth ounces, not exceeding two ounces, tax $.10; over
two ounces, not exceeding three ounces, tax $.16; over three ounces, not
exceeding four ounces, tax $.21; $.06 additional tax for each ounce or
fractional part thereof over four ounces.
(6) CHEWING TOBACCO. Upon all chewing tobacco prepared in such manner as
to be suitable for chewing only and not suitable for smoking as described
and taxed in subdivision (9) of this subsection: $.015 per ounce or fractional
(7) SNUFF. Upon each can or package of snuff weighing not more than five-eighths
ounces, one cent tax; over five-eighths ounces and not exceeding one and
five-eighths ounces, $.02 tax; over one and five-eighths ounces and not
exceeding two and one-half ounces, $.04 tax; over two and one-half ounces
and not exceeding five ounces (cans, packages, gullets), $.06 tax; over
three ounces and not exceeding five ounces (glasses, tumblers, bottles),
seven cents tax; over five ounces and not exceeding six ounces, $.08 tax;
weighing over six ounces, an additional $.12 for each ounce or fractional
(b) Whenever in this article reference is made to any manufactured tobacco
products on which the tax is based on weight, the weight as shown by the
manufacturer or the federal internal revenue stamp shall apply.
(c) When any articles or commodities subject to tax in this article are
given as prizes on punch boards, shooting galleries, premiums, etc., the
tax shall be based on the tax rates in subsection (a) of such articles.
(d) The tax herein levied shall be paid to the state through the use of
stamps as herein provided. However, every wholesaler, distributor, jobber,
semijobber, or retail dealer shall add the amount of the tax levied herein
to the price of the tobacco or tobacco products sold, it being the purpose
and intent of this provision that the tax levied is in fact a levy on
the ultimate consumer or user with the wholesaler, distributor, jobber,
semijobber, or retail dealer acting merely as an agent of the state for
the collection and payment of the tax to the state. Therefore, notwithstanding
any exemptions from taxes which any such seller may now or hereafter enjoy
under the Constitution or laws of this or any other state, or of the United
States, he or she shall collect the tax imposed hereunder from the purchaser
or consumer, and the amount of the tax shall constitute a debt from the
purchaser or consumer to the seller until paid. It shall be unlawful for
any person, firm, corporation, association, or copartnership to fail or
refuse to add to the sales price and collect from the purchaser the amount
of the tax to be added to the sales price and collected from the purchaser
hereunder. Stamps in denominations to the amount of the tax or in denominations
specified pursuant to subsection (e) of this section shall be affixed
to the box or other container from or in which tobacco products taxed
by this section are normally sold at retail. The stamps shall be affixed
in such a manner that their removal will require continued application
of water, steam, or heat; and in case of cigars, cheroots, chewing tobacco
and like manufactured tobacco products, where sales are made from the
original container, the stamps shall be affixed to the box or container
in such a way that the stamps shall be torn in two or mutilated when such
containers or boxes are opened for the sale of the tobacco products. In
the case of cigarettes, smoking tobacco, snuff, and like products sold
at retail in packages, the required amount of stamps to cover the tax
shall be affixed to each individual package or container. All taxable
tobaccos herein enumerated, when offered for sale, either at wholesale
or retail, without having stamps affixed in the manner set out by this
article, or without payment of the tax by return by the wholesaler, jobber,
semijobber, or registered retailer, shall be subject to confiscation,
in the manner provided for contraband goods as set out in this article.
(e) The Commissioner of Revenue shall prepare and issue stamps in denominations
for the amount of the tax imposed by this article provided that if the
commissioner determines that it is not economical for the state to have
a stamp prepared and issued for one or more particular types of packages
of tobacco products, then the commissioner may by regulation prescribe
the use of a stamp in a denomination other than for the amount of the
tax imposed with the difference between the amount of tax actually imposed
and the amount of tax denominated by the stamp paid with the use of a
monthly report; or may require a monthly report without use of a stamp
to report the amount of taxes due.
(f) The increases levied by this section shall be exclusive and shall be
in lieu of any other or additional local taxes and/or license fees, county
or municipal, imposed on the sale or use of cigarettes and/or other tobacco
products. Notwithstanding the foregoing, an act of the Legislature or
an ordinance or resolution by a taxing authority passed or enacted on
or before May 18, 2004, imposing a local tax and/or license fee shall
remain operative, but no additional local tax and/or license fee may thereafter
be levied on the sale of cigarettes and/or other tobacco products.
(g) Local taxes and/or license fees, county or municipal, imposed on the
sale or use of cigarettes shall be paid to the local government through
the use of stamps affixed to the product as provided herein for the state
tax. Provided, however, this requirement shall not be interpreted to require
the Department of Revenue to prepare all stamps or to collect all local
taxes. Local governments may contract with another entity to collect their
local cigarette tax but all local taxes must be collected as provided herein.
(h) Notwithstanding any other provision of this chapter all revenue from
the additional tax imposed by Act 2015-535 shall be deposited into the
State General Fund for the Medicaid Program.
(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §718; Acts 1945, No.
326, p. 528; Acts 1947, No. 288, p. 143; Acts 1955, 2nd Ex. Sess., No.
73, p. 188, §1; Acts 1959, No. 637, p. 1550; Acts 1959, 2nd Ex. Sess.,
No. 101, p. 318, §1; Acts 1959, 2nd Ex. Sess., No. 129, p. 380, §1;
Acts 1965, No. 654, p. 1177, §1; Acts 1967, No. 275, p. 784, §1;
Acts 1967, No. 309, p. 850, §1; Acts 1969, No. 551, p. 1034, §1;
Acts 1984, No. 84-309, p. 684, §1; Acts 1984, 2nd Ex. Sess., No.
85-45; Act 2004-545, p. 1157, §1; Act 2014-262, p. 827, §1;
Act 2015-535, 2nd Ex. Sess., §§1, 4.)