HB107 Summary

• Increases the state excise tax on cigarettes from $0.425 per pack to $1.425 per pack by amending Section 40-25-2 of the Code of Alabama 1975.

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

• Maintains existing tax structures for other tobacco products including cigars, smoking tobacco, chewing tobacco, and snuff.

• Establishes that the increased tax is exclusive and preempts any additional local taxes or license fees on cigarettes imposed after May 18, 2004, though previously enacted local taxes remain operative.

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