Today is Wednesday, November 26, 2014
Important Notices!
*****  Administrative Law Division Move Effective October 1st, 2014  *****
The Taxpayer Fairness Act transfers Revenue's Administrative Law Division to the newly-created Alabama Tax Tribunal; their website is now http://taxtribunal.alabama.gov/.
 
ADOR - Tobacco Tax FAQs

 

 

WHAT IS THE STATE TAX RATE ON TOBACCO PRODUCTS? Alabama's tax rate on cigarettes is 21.25 mills for each cigarette. This converts to $0.02125 for one stick, $0.425 for a package of twenty cigarettes and $0.53125 for a package of twenty-five cigarettes. Alabama's tax rates on tobacco products other than cigarettes (snuff, smoking tobacco, chewing tobacco, and cigars) vary based on weight and retail selling price of the products. Click the below link for state rates: revenue.alabama.gov/tobaccotax/ttstaterates.html

HOW IS STATE TAX ON TOBACCO PRODUCTS PAID? State tax on cigarettes is paid by purchasing revenue stamps and affixing the stamp to the package of cigarettes. Distributors can only purchase stamps from the Alabama Department of Revenue. Consumers are required to remit the tax on cigarettes by return. State taxes on tobacco products other than cigarettes are paid by tax return. Tobacco wholesalers normally pay the taxes. However, if a retailer or consumer receives untaxed products, it is their responsibility to remit the tax to the Department.

HOW MUCH ARE THE STAMPS FOR CIGARS, SNUFF, CHEWING TOBACCO AND SMOKING TOBACCO? There is not a stamp for these products, which are referred to as "other tobacco products". The state tax rates vary, and taxes are paid by filing a monthly state tobacco tax return that is due by the twentieth of the month for the previous calendar month's activity. The tax for regular cigars is based on the retail selling price, whereas the tax for little cigars, snuff, chewing tobacco and smoking tobacco is based on weight.

I AM LOCATED IN ALABAMA AND WANT TO DISTRIBUTE CIGARS AT WHOLESALE IN ALABAMA AND TO OTHER STATES. I WILL RECEIVE THESE CIGARS FROM SUPPLIERS IN THE DOMINICAN REPUBLIC, PUERTO RICO AND OTHER STATES. WHAT ARE MY FILING REQUIREMENTS? Alabama Code Section 40-25-2 states that in addition to all other taxes of every kind 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 . . . or any substitute therefor, shall pay to the State of Alabama a license or privilege tax. The distributor is responsible for filing a monthly state tobacco tax return and remitting the state tax on all untaxed cigars received for distribution. If the distributor wants to distribute tobacco products into another state, Alabama tax free, they must apply and qualify for a tobacco stamping permit (40-25-16) to become a qualified wholesaler. According to the provisions of Section 40-25-15, only a qualified wholesaler may sell tobacco products exempt from Alabama's tobacco tax. Also, if the distributor distributes the cigars into a state-administered county, they must file a monthly county tobacco tax return, and pay the county tax for each county in which there was activity. Both returns and tax payments are collected by the Department of Revenue and, are due by the twentieth of the month. (Section 40-25-15 provides for a nontaxable sale by a qualified wholesaler or jobber if the sale is to another state, the United States or any instrumentality of the United States, or ships engaged in foreign commerce or coastwise shipping between points in this state and points outside this state.  However, the product may be taxable in the state into which it is distributed.)

I AM GOING OUT-OF-BUSINESS AND WISH TO CANCEL MY STAMPING PERMIT. HOW CAN I RECEIVE A REFUND FOR THE CIGARETTE REVENUE STAMPS THAT I DID NOT USE? Once a taxpayer contacts the Tobacco Tax Section desiring to cancel their stamping permit, the Section notifies them in writing to provide written documentation concerning their effective out-of-business date. To receive a refund for unused stamps, the taxpayer must return the stamps to the Department along with a copy of the purchase invoice to substantiate the stamp sale. If the taxpayer purchased the stamps, and they returned them within the statute of limitations, a refund is issued to the taxpayer for the tax originally paid.

IS THERE A TAX ON ROLLING PAPERS? There is not a state tax on rolling papers. However, some counties do levy a tax on rolling papers. The tax rates range from $0.05 to $0.25 per package.

CAN WE SELL SINGLE CIGARETTES? No. Since the revenue stamp is not affixed to individual sticks of cigarettes, there would be no evidence of tax payment. Section 40-25-2(f), Code of Alabama 1975, states that stamps in the amount of the tax shall be affixed to the box or container from which the tobacco product is sold at retail. In the case of cigarettes, the stamp shall be affixed to the individual package of cigarettes. Taxable tobacco products offered for sale at wholesale or retail without the appropriate revenue stamp affixed in the above manner is subject to confiscation by the Alabama Department of Revenue.

HOW DO I PAY STATE-ADMINISTERED COUNTY TOBACCO TAXES? State-administered county tobacco taxes are paid on cigarettes by purchasing the county revenue stamp from the Alabama Department of Revenue and affixing the stamp to the cigarette package prior to distribution.  All cigarette products placed in retail facilities must have the appropriate county stamp affixed; otherwise, the product is subject to confiscation.  Consumers receiving untaxed cigarettes and manufacturers distributing promotional cigarettes are to remit the county tax to the Department by filing a monthly tax return.  Taxes on tobacco products other than cigarettes (OTP) are paid by all distributors and consumers by filing a monthly tax return.  Click the below link to obtain the tax return:  revenue.alabama.gov/tobaccotax/ttforms.html Questions relating to county tobacco taxes not administered by the Alabama Department of Revenue must be directed to the appropriate county commission.

WHAT ARE THE COUNTY TAX RATES ON CIGARETTES? The county tax rates on cigarettes are based on a per package basis. County cigarette tax rates vary from county to county according to the language of each Act. County cigarette tax rates range from a low of $0.01 to a high of $0.25 per package.  Click the below link for county rates: revenue.alabama.gov/tobaccotax/tobacco/tobaccoindex.html

ARE THERE COUNTY TAXES ON CHEWING TOBACCO, SNUFF, SMOKING TOBACCO, CIGARS, OR ROLLING PAPERS? These items are commonly referred to as other tobacco products (OTP). Most of the counties impose a tax on these items. The tax rates vary according to each county Act.  Click the below link for county rates: revenue.alabama.gov/tobaccotax/tobacco/tobaccoindex.html

HOW ARE CIGARS TAXED FOR COUNTY PURPOSES? The tax on cigars differs between counties. Standard cigars for state-administered counties are all taxed per cigar, or each, and the rates range from $0.02 to $0.12. Little cigars are taxed by the pack or per each little cigar.  The rate per pack of little cigars ranges from $0.04 to $0.12.  The rate per each cigar ranges from $0.02 to $0.05.  Click the below link for county rates: revenue.alabama.gov/tobaccotax/tobacco/tobaccoindex.html

ARE THERE COUNTY REVENUE STAMPS THAT I MUST APPLY TO MY PRODUCT? Yes, state-administered county cigarette tax is collected by purchasing the stamp from the Alabama Department of Revenue.  Some self-administered counties also collect and administer their taxes by using revenue stamps.    

IS THERE A TAX ON PLAYING CARDS? HOW IS THE TAX PAID? Playing cards containing not more than fifty-four (54) cards are taxed at $0.10 per deck. A revenue stamp must be affixed to each deck of playing cards. The revenue stamp can only be purchased from the Alabama Department of Revenue. In addition, each retailer must obtain a playing card privilege license (40-12-144).

HOW DO I AFFIX THE REVENUE STAMP TO A DECK OF PLAYING CARDS WHEN THE CARDS ARE PREPACKAGED INSIDE A GAME OR GIFT PACKAGE? If the playing cards are packaged inside a game or gift package, the revenue stamp may be affixed to the outside of the game or gift.    

WHAT IS THE ALABAMA UNDERGROUND AND ABOVEGROUND STORAGE TANK TRUST FUND ACT? This Act established a trust fund to pay for the investigative and cleanup costs resulting from leaks or spills from motor fuel underground and aboveground storage tanks. The Department of Revenue collects the charge. The Alabama Department of Environmental Management (ADEM) handles all claims associated with the fund.

WHO IS RESPONSIBLE FOR REMITTING THIS CHARGE TO THE DEPARTMENT OF REVENUE? The charge is collected and remitted by operators of bulk facilities from which a first withdrawal of motor fuels from bulk is made. When fuel is withdrawn from bulk outside this state, the owner of the fuel when it is delivered into Alabama is responsible for collecting and remitting the charge.

The monthly return and payment are due by the twentieth of each month.

WHAT IS THE FEE RATE OF THIS CHARGE? The Trust Fund Management Board will determine the fee on an annual basis and the fee shall not be greater than $0.02 per gallon nor less than $0.003 per gallon. As of October 1, 2004, the fee was set at $0.01 per gallon. Effective January 1, 2010, the fee increased to $0.0125 per gallon. Effective April 1, 2012, the fee decreased to $0.01 per gallon. Section 22-35-3 (19) provides that the charge not be assessed on motor fuel withdrawn from bulk when the ultimate destination is outside Alabama. Section 22-35-5 (b) provides that the charge not be imposed on the withdrawal from bulk of fuel oil to be used in the generation of electricity.)  

WHAT IS A PARI-MUTUEL POOL TAX? This is a tax fee levied on operators of dog and horse race tracks in Alabama. Pari-mutuel is a system of betting on races whereby the winners divide the total amount bet, after deducting authorized taxes, fees and management expenses, in proportion to the sums wagered individually. The total amount wagered in any particular race is the pari-mutuel pool.

HOW MANY DOG AND HORSE RACE TRACKS ARE THERE IN ALABAMA? There are three live dog race tracks in Alabama. They are in Mobile, Macon, and Jefferson counties. Greene County simulcasts the dog race tracks. All four counties simulcast dog and horse race tracks.    

WHAT ARE THE FEES ON HAZARDOUS WASTE DISPOSED OF IN ALABAMA? State fees on hazardous waste disposed of in Alabama are based on the toxicity of the waste received for disposal. The fee is paid to the Department of Revenue by filing a monthly report that is due by the thirtieth of the month for the previous month's activity.

The fees for an Alabama facility are as follows:

$5.5 per ton on hazardous waste identified or listed under Section 3001 of the Resource Conservation and Recovery Act of 1976 as amended (RCRA), and on PCB wastes.
$5.50 per ton on all other waste not referenced above.
An additional $1.00 per ton is imposed on all waste received for disposal.
 

Additional fees are also collected by the county in which the hazardous waste commercial site is located.

WHO IS REQUIRED TO FILE AND PAY SOLID WASTE DISPOSAL FEES? All solid waste disposal facilities which have been issued a permit by the Alabama Department of Environmental Management are required to file and pay solid waste disposal fees to the Alabama Department of Revenue (ADOR).

AS A PRIVATE SOLID WASTE DISPOSAL FACILITY WITH A $1,000.00 PER CALENDAR YEAR FEE PAYMENT LIMITATION, AM I REQUIRED TO FILE A REPORT EACH QUARTER? Yes, private solid waste disposal facilities are required to file the quarterly report each quarter even if the $1,000 fee payment limitation has been met.

WHEN IS THE SOLID WASTE FEE REPORT AND PAYMENT DUE TO ADOR? The report and payment is due each quarter not later than the 20th day of January (for Oct., Nov. & Dec. activity), April (for Jan., Feb. & Mar. activity), July (for Apr., May, & Jun. activity), and October (for Jul., Aug. & Sep. activity).

WHAT ARE THE SOLID WASTE DISPOSAL FEE RATES? The rates are as follows:

a. $1.00/ton -

Waste received for disposal in a municipal solid waste landfill. Regulated solid waste that may be approved by ADEM as alternate cover materials in landfills. Regulated solid waste received from out-of-state for disposal at permitted public solid waste facilities.

b. $1.00/ton or $0.25/cubic yard -

Waste received for disposal in public industrial landfills, construction and demolition landfills, non-municipal solid waste incinerators, or composting facilities, which was not generated by the permittee. Regulated solid waste that may be approved by ADEM as alternate cover materials in landfills. Regulated solid waste received from out-of-state for disposal at permitted public solid waste facilities.

c. $0.25/cubic yard -

Waste generated for disposal in a private solid waste management facility.