AL HB529

Imposes a $0.10 per milliliter excise tax on consumable vapor products sold at wholesale or imported into Alabama beginning October 1, 2026, with tax exemptions for sales between licensed wholesalers and exported products.

Distributes tax proceeds quarterly as 50% to the State General Fund, 25% to counties by population ratio, and 25% to municipalities by population ratio, excluding jurisdictions that levy local vapor product taxes.

Requires persons selling consumable vapor products to obtain a license from the Alabama Department of Revenue and submit monthly tax statements by the 20th of each month, with a 4.75% discount for timely payment.

Mandates retailers maintain records of all vapor product purchases for 90 days at their location, then for 3 years with other books and records; violations constitute a Class B misdemeanor with each month as a separate offense.

Amends code sections to establish permitting requirements for vapor product retailers and manufacturers, including FDA premarket application certifications with $2,000 initial and $500 annual renewal fees, and prohibits synthetic nicotine products unless FDA-approved.