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HB663 INTRODUCED
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HB663
V71XZVV-1
By Representative Faulkner
RFD: Ways and Means General Fund
First Read: 31-Mar-26
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V71XZVV-1 03/27/2026 CMH (L)CMH 2026-1466
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First Read: 31-Mar-26
SYNOPSIS:
Under existing law, an excise tax in the amount
of $0.10 per milliliter is assessed against consumable
vapor products sold in the state.
This bill would revise the calculation of the
excise tax based on the amount of nicotine in the
consumable vapor product.
This bill would require each consumable vapor
product to be properly labeled with information stating
the amount of nicotine in the product and the total
liquid content of the product.
This bill would also provide civil penalties for
violations of the product label requirements.
A BILL
TO BE ENTITLED
AN ACT
Relating to consumable vapor products; to amend Section
40-25-81, Code of Alabama 1975, as added by Act 2025-377, 2025
Regular Session, to further provide for the excise tax on
consumable vapor products based on quantity of nicotine; to
provide product labeling requirements for consumable vapor
products; to require the Alcoholic Beverage Control Board to
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products; to require the Alcoholic Beverage Control Board to
assess fines against e-liquid manufacturers for labeling
violations; and to require the board to assess fines for
retail violations concerning improperly labeled consumable
vapor products.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-25-81, Code of Alabama 1975, as
added by Act 2025-377, 2025 Regular Session, is amended to
read as follows:
"§40-25-81
(a)(1) Beginning October 1, 2026, there is levied an
excise tax upon all consumable vapor products sold at
wholesale in this state or imported into this state for use,
consumption, or sale at retail. The tax shall be tenlevied as
follows:
a. Ten cents ($0.10) per milliliter of a consumable
vapor product containing more than six milligrams per
milliliter of nicotine from tobacco, synthetic nicotine, or
any tobacco substitute as defined under Section 28-11-2.
b. Except as provided in paragraph c., five cents
($0.05) per milliliter of a consumable vapor product
containing six milligrams or less per milliliter of nicotine
from tobacco, synthetic nicotine, or any tobacco substitute as
defined under Section 28-11-2 .
c. Ten cents ($0.10) per milliliter of a consumable
vapor product if the label required in Section 2(a) of the act
amending this section is not affixed to the consumable vapor
product.
(2) The tax shall not apply to sales between licensed
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(2) The tax shall not apply to sales between licensed
wholesalers, it being the purpose and intent of this provision
that the tax levied is a levy on the ultimate consumer or user
of consumable vapor products with the wholesaler acting merely
as an agent of the state for the collection and payment of the
tax to the state.
(b)(1) Except as provided in subdivision (2), the tax
shall be in addition to all other licenses and taxes levied by
law.
(2) The tax levied in subsection (a) shall be in lieu
of any business license fee measured by the volume of sale for
selling consumable vapor products. Any act of the Legislature
or resolution by a county commission passed or enacted on or
before October 1, 2025, imposing a business license fee on
engaging in the business of selling consumable vapor products,
is void. Nothing in this section shall be construed to
restrict a municipality's authority to issue a business
license pursuant to Article 2 of Chapter 51 of Title 11 on the
privilege of doing business as a consumable vapor products
wholesaler, importer, or retailer. Any business license issued
pursuant to Article 2 of Chapter 51 of Title 11 shall not be
measured by the volume of sale for selling consumable vapor
products.
(3) Notwithstanding any other provision of this
article, an act of the Legislature or an ordinance or
resolution by a taxing authority passed or enacted on or
before October 1, 2025, imposing or providing for the levy of
a local tax or license fee shall remain operative; however, no
additional local tax or license fee may be levied on the sale
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additional local tax or license fee may be levied on the sale
of consumable vapor products after October 1, 2025.
(c) The tax shall not apply to any consumable vapor
product exported from this state for which proof of export is
available in the form of a bill of lading, shipping document,
or invoice."
Section 2. (a) Every e-liquid manufacturer, as defined
under Section 28-11-2, Code of Alabama 1975, shall include
both of the following on the label of each e-liquid product:
(1) The amount of nicotine in milligrams per milliliter
of liquid.
(2) The total volume of the liquid contents of the
e-liquid product, expressed in milliliters.
(b) If an e-liquid manufacturer, as defined under
Section 28-11-2, Code of Alabama 1975, sells, furnishes, or
gives away a consumable vapor product, as defined under
Section 40-25-80, Code of Alabama 1975, without a label
required in subsection (a), the Alcoholic Beverage Control
Board shall assess against the e-liquid manufacturer a one
thousand dollar ($1,000) fine for each day the product is
offered for sale in violation of this section. The fine shall
continue to be assessed each day until the offending product
is removed from the market or until the offending product is
properly labeled.
(c) If a retailer holding a permit under Section
28-11-7 or 28-11-7.1, Code of Alabama 1975, for the retail
sale of electronic nicotine delivery systems offers for sale a
consumable vapor product not labeled as required in subsection
(a), the Alcoholic Beverage Control Board shall assess the
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(a), the Alcoholic Beverage Control Board shall assess the
following administrative penalties:
(1) For a first offense within a four-year period, an
administrative penalty of one thousand dollars ($1,000).
(2) For a second offense within a four-year period, an
administrative penalty of two thousand five hundred dollars
($2,500).
(3) For a third or subsequent offense within a
four-year period, an administrative penalty of five thousand
dollars ($5,000). In addition, the board shall revoke the
permit of the permit holder and no permit may be issued to the
permit holder for a minimum of one year after the date of
revocation.
Section 3. This act shall become effective on October
1, 2026.
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