HB457 Summary

• Increases Alabama cigarette tax from $0.425 per pack to $1.425 per pack (a $1.00 increase per pack).

• All revenue from the increased cigarette tax is deposited into the State General Fund and allocated as follows: 44.5% to Medicaid, 44.5% to Children First Trust Fund, 5% to University of Alabama at Birmingham Comprehensive Cancer Center, 5% to University of South Alabama Mitchell Cancer Center, and 1% to Alabama Department of Public Health for tobacco cessation.

• The increased tax is exclusive and preempts additional local taxes and license fees on cigarettes and tobacco products, except for local taxes enacted on or before May 18, 2004.

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