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Tobacco Taxes

  • Tobacco Taxes


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.


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

Non-participating manufactures are to make quarterly escrow deposits by January 31, April 30, July 31, and October 31.

Amounts to be placed into the escrow fund, as adjusted for inflation, are $.0188482 per unit sold. 

For cigarettes (state and state-administered counties), tax is paid by affixing stamps. For other tobacco products, a report ( state and state-administered counties) shall be submitted to the state with the appropriate tax remitted. 

File  and remit to ALDOR, Business and License Tax Division, Tobacco Tax Section, by the 20th of the month for the stamps purchased on consignment or products handled during the preceding month.

In addition to state tobacco taxes, cigarettes and other tobacco products are subject to taxation at the local level. The local tobacco taxes range from $0.04 to $0.25 per pack of cigarettes and other tobacco products of various packages and containers and up to 0.25 per package of rolling papers. 

Municipal taxes, where applicable. are collected and administered by the municipality or its designated agent.