IPCPR Legislative | Shipping in Alabama

Shipping in Alabama

Alabama_Capitol_Building1

Shipping in Alabama

Alabama does not have any specific restrictions concerning the shipping of tobacco products to consumers. However, Alabama has specific requirements concerning the shipping of cigarettes to consumers. In addition, federal PACT Act requirements concerning cigarettes, roll-your-own tobacco, and smokeless tobacco products apply. The federal PACT Act requires any person who sells, transfers, or ships cigarettes, roll-your-own tobacco, and smokeless tobacco into a state to register with the tobacco tax administrator of the state. The federal PACT Act requires delivery sellers to comply with shipping requirements.

 

Ala. Code §§ 13A-12-3.1 to 13A-12-13.7

 

15 U.S.C. §§ 375 to 378

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

 

Persons and companies transporting and distributing tobacco products within the state that do not have a Section 40-12-72 or Section 40-12-73 privilege license to sell tobacco products must complete an Application for Permit to Transport and Distribute Taxable Tobaccos.

 

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

 

Additional information about licensure in Alabama is available at the Operating Your Business link above.

Alabama has specific age verification requirements for the shipping of tobacco products to consumers. For legal mail order purposes, only a valid signed certification that will verify the individual is 19 years of age or older can be used for the purpose of determining the age of a person purchasing, attempting to purchase, or receiving tobacco products.

 

Ala. Code §§ 28-11-1 to 28-11-15

 

Ala. Admin. Code r. 20-X-20-.01

 

Alabama has specific age verification requirements for the shipping of cigarettes. In addition, the federal PACT Act age verification requirements for the shipping of cigarettes, roll-your-own tobacco, and smokeless tobacco products apply.

 

Ala. Code §§ 13A-12-3.1 to 13A-12-13.7

 

15 U.S.C. §§ 375 to 378

Alabama imposes a “license or privilege tax,” measured according to volume of sales, on every person or entity within the State who sells, stores, or receives tobacco products for the purpose of distribution. However, every wholesaler, distributor, jobber, semijobber, or retail dealer is required to add the amount of the tax to the price of the tobacco or tobacco products sold. If a retail dealer or consumer receives untaxed products, it is their responsibility to remit the tax to the Department of Revenue.

 

Taxes on tobacco products other than cigarettes and smokeless tobacco (“OTP”) are paid by all distributors and consumers by filing a monthly state tax return.

 

Ala. Code § 40-25-2

 

Additional information about taxation in Alabama, including information about tax rates, filings, and forms, is available in the Taxation and Definitions section.

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