HB9 Summary

• Increases Alabama's cigarette tax from $0.425 per pack to $1.425 per pack, effective the first day of the third month following passage and approval.

• All revenue from the increased cigarette tax is deposited into the State General Fund and allocated to the Medicaid Program.

• The state tax increase 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.

• Local governments may continue collecting existing cigarette taxes through stamps affixed to products and may contract with third parties for tax collection administration.