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Fairhope council adopts local vapor‑product tax after rate cut; business classifications added to code
Summary
Council adopted a local excise tax on consumable vapor products and added retailer/wholesaler classifications to the business license code after reducing the proposed rate; a local deadline tied to a state law drove the expedited timetable.
The Fairhope City Council voted Sept. 22 to add vape‑related license classifications to the municipal business license code and to adopt a local excise tax on consumable vapor products, after staff and council members reduced the initially proposed rate following public comment.
City Finance staffer Jennifer Olmstead explained that the state recently enacted Act 2025‑377 (as referenced in the work session), which imposes a state tax on consumable vapor products and includes a population‑based redistribution of proceeds to counties and municipalities. Olmstead told council the city would receive a share of state collections based on population, but that municipalities that levy a local tax must have that tax in effect by Oct. 1, 2025 to preserve local taxing authority.
Why it…
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