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Council adopts ordinance to capture state vapor tax locally, require business licenses for vape sales
Summary
The council adopted an ordinance aligning local licensing to a new state excise tax on consumable vapor products so the city receives its local share rather than an allocation based on population.
The Orange Beach City Council adopted a local ordinance Sept. 2 amending Chapter 50, Article 5, Division 3 of the city code to implement a local exercise (excise) tax and require business licenses for the sale of consumable vapor (vape) products.
City Administrator Ford Hamley told the council the state is enacting the tax and the city’s ordinance is intended to ensure Orange Beach receives its proper allocation rather than letting the state allocate funds to municipalities based on population. Hamley said the measure does not constitute a new city‑levied tax but is a local implementing ordinance to collect the state levy in a way that benefits the city.
The council suspended the rules for immediate consideration and approved the ordinance by unanimous roll call: Council Members Silvers, Johnson, Mitchell, Blaylock and Boyd and Mayor Kenan voted yes. City staff said the ordinance will allow the city to capture its share rather than having distributions determined solely by population calculations.
The ordinance was introduced and advanced at first reading with unanimous consent; staff and council did not provide a fiscal estimate during the meeting. The measure requires local business licensing for vendors of consumable vapor products in the city limits and police jurisdiction of Orange Beach.
