HB277 Summary

• Adds new Section 40-25-2.1 to Alabama Code establishing a tax on cigar wrappers made wholly or in part from tobacco sold at wholesale or imported into the state.

• Tax rates range from $0.04 per package for wrappers weighing not more than 1.125 ounces to $0.21 per package for 3-4 ounces, plus $0.06 additional tax per ounce or fractional ounce over 4 ounces.

• Requires sellers of taxed cigar wrappers to obtain a business license from the Department of Revenue and file monthly tax reports by the 20th of each month.

• Imposes Class B misdemeanor penalties for failure to file required reports or maintain required records, with each month of failure constituting a separate offense.

• Directs all tax revenue collected to be distributed according to Section 40-25-23(3) provisions for tobacco products other than cigarettes, with department operation costs deducted as a first charge; bill becomes effective on the first day of the third month following passage.