Alabama Retail opposes Baldwin County’s plan to tax vape, hemp and CBD products

Baldwin County voters would be asked to levy up to a 10% tax on vape, hemp and cannabidiol (CBD) products under unprecedented legislation the county’s House legislative delegation approved Wednesday, Feb. 26. HB43 by Rep. Matt Simpson, R-Daphne, now goes to the full House for consideration.

The Alabama Retail Association opposes the bill as a tax on a small category of products in a single Alabama county would be punitive, burdensome and costly for retailers.

HB43 is a local constitutional amendment that would authorize the Baldwin County Commission to tax the sale of alternative nicotine products and electronic nicotine delivery systems as well as the final retail sale of industrial hemp and products including CBD.

Having a single-county tax on three categories of products cannot be handled by most retailers’ point-of-sale systems.

Most problematic would be hemp as it can be found in more than 100 types of products, including in certain:

Paper Carpet Pet collars and leashes
Clothing Cloth/Bedding Pet food
Shoes Lip Balm Pet litter
Furniture Nail Polish Animal bedding
Foods Soaps Fitness equipment
Drinks Creams and lotions Diaper inserts
Candy Shampoos Guitars

The tax proceeds would be used to create a mental health diversionary program.

Simpson told the committee the county commission estimates the tax could generate up to $600,000 annually.

This bill would open a floodgate of other special product taxes by Alabama localities. Contact your state representative to stop this legislation.

This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!

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