As as Jan. 1, 2023, unstamped tobacco products subject to confiscation, unregistered sellers face civil penalties

Act No. 2022-352
by Sen. Bobby Singleton, D-Greensboro, and Rep. Kyle South, R-Fayette

Beginning Jan. 1, 2023, unstamped tobacco products will be subject to immediate confiscation, under legislation signed into law April 13.

People are buying tobacco products in surrounding states and bringing them back into our state untaxed,” said Rep. Kyle South, R-Fayette, the legislation’s House sponsor.

The legislation recommended by the Alabama Department of Revenue sets civil penalties for selling tobacco without being registered in the state. Anyone who uses a sales tax number to buy tobacco products will be considered purchasing for resale. The legislation requires a tobacco account and reporting sales monthly to the Revenue Department. Sellers who fail to obtain a tobacco tax account would be subject to a written warning on first offense and a civil penalty of $100 on second offense. On the third offense, the $100 civil penalty would be multiplied by the total number of violations.

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