The Alabama House Ways and Means General Fund Committee has passed HB529, a bill introduced by state Rep. David Faulkner (R-District 46) that seeks to impose an additional tax on the sale of "consumable vapor products" in the state at a rate of 10 cents per milliliter. Consumers would pay the cost of the tax in addition to the existing Alabama sales tax.
Under Alabama law, a consumable vapor product includes "any nicotine liquid solution or other material containing nicotine that is depleted when used as a vapor product." The bill also outlines that 50 percent of the funds collected by the tax would go to the State General Fund, 25 percent would be distributed to the state's counties by population, and the remaining 25 percent would be distributed to Alabama's municipalities by population.
Rep. Faulkner explained that the primary reason for the bill is to enforce regulations and protect Alabama's youth. "Illegal consumer vape products… are rampant in Alabama. It's estimated that 80 to 85 percent of the vape products sold in stores are illegal, meaning they're not on the registry," he said. "Right now there is no money or mechanism for enforcement. This bill will give the Alabama ABC Board the authority to create a new license fee to have enforcement out in the field."
The bill also requires retailers to apply for a $150 permit to sell consumable vapor products, with penalties for non-compliance mirroring those for unlicensed tobacco sellers. Revenue collected from the permit fee would be used by the ABC Board to enforce the bill's provisions and target the sale of illegal vape products in the state.
After receiving a friendly amendment to clarify language and ensure compliance with federal law, HB529 quickly passed the committee with multiple members expressing their approval. The bill will now move to be considered by the House floor.
If passed, the new 10-cent per milliliter tax and permit requirements could have a significant impact on the vape industry in Alabama, while also providing a mechanism for the state to enforce regulations and protect youth from illegal and potentially harmful products. As the debate over vaping and its impact on public health continues, lawmakers across the country are grappling with how to balance the rights of adult consumers with the need to safeguard the well-being of children and teens.
