Tuesday, September 1, 2026
Effective October 1, 2026, Act 2025-377 levies a state excise tax of $0.10 per milliliter on all consumable vapor products sold at wholesale or imported into this state for use, consumption, or sale at retail. The tax is levied on the ultimate consumer or user of the consumable vapor products. This tax does not apply to sales between licensed wholesalers and properly documented exports (bill of lading, shipping document, and/or invoice).
All wholesalers and/or retailers who sell consumable vapor products and are responsible for collection and remittance of the tax will be required to obtain a license with ALDOR. The registration for the license must be filed through My Alabama Taxes. Penalties may be assessed against any business that sells consumable vapor products without the proper license.
To register for the Vapor Products Tax License, go to https://myalabamataxes.alabama.gov/tap. Click on the “Register a New Business” under “Featured Services.” The system will guide you through the registration process. If your business currently has tax accounts with ALDOR, you will be required to enter the Sign On ID and Access Code for your account. You will be applying for a Vapor Products Tax account, and it can be found under the “Less Common Account Types” listing. Please have your Alcoholic Beverage and Control Board (ABC)/Tobacco Vapor Permit number and ALDOR registration available, if applicable, to enter during the registration process. There is no registration fee. The registration process will be available on My Alabama Taxes starting October 1, 2026. Once your registration has been approved, ALDOR will mail a registration letter with reporting requirements and the license separately to you.
This tax will be paid by return and will be due on the 20th of the month for the preceding calendar month’s activity. A discount of 4.75 percent is allowed for timely filing returns and payments. If full payment is not remitted timely, the discount will be disallowed. Consumable vapor products must be included on the Sales for Resale Report (WRAP report).
If you have any questions about this notice, contact the Tobacco Tax Section.
Contact
Business and License Tax Division
Tobacco Tax Section
PO BOX 327555
MONTGOMERY AL 36132-7555
334-242-9627
Tobacco.Account@revenue.alabama.gov
