Alabama bill targets illegal vape products with new licensing and tax measures

The Alabama Senate Fiscal Responsibility and Economic Development Committee convened on April 16, 2025, to discuss a proposed bill aimed at addressing the prevalence of illegal vape products in the state. The bill seeks to remove these products from store shelves, with estimates suggesting that 80 to 85% of vape products currently sold in Alabama are not listed on the state registry.

The legislation would empower the Alabama Alcoholic Beverage Control (ABC) Board to implement a new licensing fee to support enforcement efforts against illegal sales. It proposes a tax of $0.10 per milliliter on vape products, separate from existing sales taxes. Revenue generated from this tax would be allocated as follows: 50% to the general fund, 25% to counties, and 25% to municipalities, based on population.

The bill also aims to align licensing and penalties for vape products with those already in place for tobacco sellers. Violations could lead to business closures and legal action, with law enforcement authorized to confiscate untaxed products. Currently, 30 states, along with the District of Columbia and Puerto Rico, have imposed taxes on vape products, indicating that Alabama is lagging in both taxation and enforcement.

During the meeting, Ashley Lyerly from the American Lung Association expressed support for the bill but called for a higher tax rate to effectively deter youth access to vaping products. She emphasized the need for a comprehensive licensing program that includes all tobacco products, not just e-cigarettes.

Conversely, Joe Farrell, a vape store owner, raised concerns about the proposed tax, arguing it could significantly increase prices and reduce sales. He highlighted existing restrictions on synthetic nicotine, which complicate compliance with the registry and contribute to the illegal sales issue.

Ross Gunnels, representing the Alabama Wholesale Distributors Association, echoed concerns about the enforcement of product regulations and the need for clarity on what can be sold in Alabama stores.

The committee's discussions reflect a growing urgency to regulate the vape market in Alabama, balancing public health concerns with the economic implications for retailers and distributors. The next steps will involve further deliberation on the bill and potential amendments to address stakeholder concerns.