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Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

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Tobacco Tax

  • Tobacco Tax

Authority

Sections 40-25-1 through 40-25-29, and 40-25-40 through 40-25-47, Code of Alabama 1975.

Sale, storage, use, or distribution of tobacco products by wholesalers, retailers, and consumers.

$0.675 on each package of 20 cigarettes. On other tobacco products such as cigars, filtered cigars, cigar wrappers, smoking tobacco, chewing tobacco, and snuff, rates vary, depending on weight or number of cigars received.

Cigarettes

24.44% as follows:

  • 66.67% – General Fund
  • 12.12% – Bonds maturing for purpose of acquiring and
    constructing mental health facilities, remainder to General and Mental Health Fund
  • 6.06% – State Public Welfare Trust Fund
  • 6.06% – Bonds issued by State Parks Development Authority, remainder to State Parks Fund
  • 9.09% – IDA Bonds, Remaining to “General and Mental
    Health Fund”

75.56% as follows:

  • $2 million to counties to offset administrative expenses

Balance – General Fund for Medicaid services

Other Tobacco Products 100% – General Fund