HB440 Summary

• Requires sellers to obtain a tobacco account and file monthly reports when purchasers use sales tax numbers, treating such sales as purchases for resale with penalties for non-registered sellers ($100 for second violation, $100 multiplied by total violations for third or subsequent violations).

• Makes transporting unstamped or untaxed tobacco products without an active tobacco permit or transporter permit a Class A misdemeanor, or a Class C felony if quantities exceed specified thresholds (25,000 cigars, 50,000 filtered cigars, 50,000 cigarettes, etc.) or for second or subsequent offenses.

• Authorizes seizure without warrant of unstamped or untaxed tobacco products and vehicles used to transport them, with vehicles subject to public auction sale after seizure.

• Requires persons transporting tobacco products to provide proof of destination to law enforcement officers upon request, with civil penalties of $100 for first violation and $100 multiplied by total violations within three years for subsequent violations.

• Becomes effective January 1, 2023, and is exempted from local funding requirements under Alabama constitutional Amendment 621 because it defines new crimes.