IPCPR Legislative | Operating Your Business in Alabama

Operating Your Business in Alabama

Alabama_Capitol_Building1

Operating Your Business in Alabama

Any person who distributes tobacco products within Alabama must first obtain a tobacco license from the Alabama Alcoholic Beverage Control (“ABC”) Board for each location of distribution. There is no fee for this license. ABC Licenses are valid from October 1st to September 30th of the following year and must be renewed annually. The pre-application packet can be found at http://abcboard.alabama.gov/(S(krqnnkz5brs4phb1o44ods2q))/how_to_apply.aspx. Licenses must be renewed in June or July of each year at https://www.alabamainteractive.org/abc_license/.

 

 

Ala. Code § 28-11-7

Wholesalers distributing untaxed tobacco products in Alabama should also submit an Application for Tobacco Stamping Permit [Form TOB: APP-R (In-state) or Form TOB-APP-NR (Out-of-state)]. Distributors who want to distribute tobacco products into another state, Alabama tax free, must also apply and qualify for a Tobacco Stamping Permit to become a qualified wholesaler, as only a qualified wholesaler may sell tobacco products exempt from Alabama’s tobacco tax.

 

Ala. Code § 40-25-15

 

Retail distributors receiving or selling tobacco products for which the state and/or state-administered county taxes have not been paid must submit the Tobacco Products Registration Form (Form TOB: REG) to the Department of Revenue.

 

Tobacco product retailers and wholesalers are also required to obtain a privilege license from each county in which the entity does business. Retailers must pay to the state the following privilege license tax:  in cities of 25,000 inhabitants and over, $15; in cities or towns of 10,000 inhabitants and less than 25,000 inhabitants, $10; in cities or towns of 5,000 inhabitants and less than 10,000 inhabitants, $5; in cities or towns of 2,000 inhabitants and less than 5,000 inhabitants, $3; in all other places, whether incorporated or not, $2. Wholesalers are required to pay one $100 privilege license tax to the state and $5 to each county in which the wholesale dealer does business.

 

Ala. Code § 40-12-72: Retailers
Ala. Code § 40-12-73: Wholesalers

 

Each distributor of other tobacco products in Alabama is required to file a Monthly State Tobacco Tax Return (Form TOB: OTP) and a Report of All Tobacco Sales for Resale (Form TOB: SALES FOR RESALE) with the Department of Revenue by the 20th of each month, along with payment for taxes due. These forms must be filed even if there is no activity during the month.

 

In addition, distributors who sell or receive tobacco products in a state-administered county for which the county tax has not been paid must file a Monthly County Tobacco Tax Return (Form TTCO-A) by the 20th of each month, along with payment for taxes due.

 

Bars and lounges are exempt from the ban on smoking, where the establishment is primarily devoted to the serving of alcoholic beverages for consumption on the premises and in which food service is only incidental to the consumption of beverages. However, Alabama law does not provide a specific application procedure to qualify for exemption from the smoking ban. Localities may have specific requirements.

 

Ala. Code § 22-15A-4

 

Localities may also require additional business licenses.

Alabama Tobacco Tax Returns and Forms Database
http://revenue.alabama.gov/tobaccotax/ttforms.cfm

 

Application for Tobacco Stamping Permit
Form TOB: APP-R (In-state)
http://revenue.alabama.gov/tobaccotax/TOB-APP-R.pdf

 

Form TOB: APP-NR (Out-of-state)
http://revenue.alabama.gov/tobaccotax/TOB-APP-NR.pdf

 

Form TOB: T-AGREE – Agreement Which Is a Part of The Application for Tobacco Wholesalers Permit
http://revenue.alabama.gov/tobaccotax/TOB-T-AGREE.pdf

 

Form TOB: REG – Tobacco Products Registration Form
http://revenue.alabama.gov/tobaccotax/TOB-REG.pdf

 

Form TOB: OTP – Monthly State Tobacco Tax Return

http://revenue.alabama.gov/tobaccotax/TOB-OTP%20(10-14).pdf

 

Form TOB: SALES FOR RESALE – Report of All Tobacco Sales for Resale

http://revenue.alabama.gov/tobaccotax/TOB-SALES%20FOR%20RESALE%20(10-14).pdf

 

Form TOB: TTCO-A – Monthly County Tobacco Tax Return
http://revenue.alabama.gov/tobaccotax/TOB-TTCO-A.pdf

 

Form TOB: Rep-A – Application for Permit to Transport & Distribute Taxable Tobaccos
http://revenue.alabama.gov/tobaccotax/TOB-REP-A.pdf

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