Legislation proposing a new 10 cents per milliliter tax on consumable vapor products (HB529) cleared an Alabama House committee on April 8th. Sponsored by Rep. David Faulkner (R-District 46), the bill aims to levy the new tax while also funding enforcement against illegal vape sales. It passed the House Ways and Means General Fund Committee after brief discussion and minor amendments.
Under HB529, consumers would pay the 10¢/ml tax at retail on nicotine liquids or other materials depleted during vaping, in addition to state sales tax. This new state tax would replace any existing local vape taxes. Revenue would be split 50% to the State General Fund, 25% to counties, and 25% to municipalities, distributed by population. Retailers would also need a new $150 annual permit to sell these products.
Rep. Faulkner stressed the bill’s primary goal is funding enforcement by the Alabama ABC Board to combat illegal vapes, estimated to be 80-85% of the market, thereby protecting youth. Permit fees would fund these efforts. He noted over 30 states have similar taxes.
Retailers face monthly tax return requirements. Non-compliance with the tax or permit rules could lead to prosecution by the Attorney General, confiscation of untaxed products, and being barred from selling vape products. After easily passing committee, HB529 now moves to the full Alabama House floor for consideration.
- Alabama Committee OKs 10¢/ml Vape Tax Bill (HB529) - April 12, 2025
- Iowa Vaping Restrictions Postponed Following Lawsuit - January 2, 2025