HB119 Summary

• Increases Alabama's cigarette tax from $0.26 per pack to $0.75 per pack (from 21.25 mills to 37.5 mills per cigarette).

• All revenue generated from the increased cigarette tax is deposited into the State General Fund.

• State cigarette tax increase is exclusive and replaces any other local taxes or license fees on cigarettes enacted after May 18, 2004, but allows previously enacted local taxes to remain in effect.

• Tax collection continues through the existing stamp system affixed to cigarette packages; Commissioner of Revenue retains authority to prescribe alternative stamp denominations if economically necessary.

• Act becomes effective on the first day of the third month following passage and approval by the Governor.