Alabama § 40-25-15.1 - Interstate Warehouser Permit; Application and Enforcement; Penalties.

§ 40-25-15.1. Interstate Warehouser Permit; Application and Enforcement; Penalties.

(a) Before an interstate warehouser may ship tobacco products into this state, the interstate warehouser must possess a current interstate warehouser permit.

(b)(1) The annual application for an interstate warehouser permit must include the following items and any other information required by the department:

a. A copy of the current wholesale license or permit, or its equivalent, issued by at least four states other than Alabama.

b. A current Certificate of Authority issued by the Alabama Secretary of State if the applicant is not registered in Alabama as a domestic entity.

c. The name and address of each permitted wholesaler within this state to whom the applicant will be delivering tobacco products.

d. A copy of any contracts between the applicant and the permitted wholesalers in Alabama regarding the potential sale of tobacco products within this state.

e. A copy of the most recent audited financial statements from a certified public accountant or a firm regularly engaged in the auditing of financial records.

f. A permit fee of two thousand dollars ($2,000) for the initial application.

(2) An annual permit renewal fee of five hundred dollars ($500) shall be due on October 1 of each following year with the annual renewal application. Failure to submit the required renewal application and fee by October 1 shall constitute a voluntary dismissal of the interstate warehouser permit.

(3) Permit fees may be retained and used by the department for the enforcement of this chapter.

(c) An interstate warehouser permit is non-transferable, and the annual fees paid are non-refundable.

(d) The department may refuse to issue a permit to an applicant under this section if any of the following conditions exist:

(1) The application is incomplete or contains inaccurate information.

(2) The applicant has been convicted of any criminal offense involving fraud or misrepresentation.

(3) The applicant’s wholesale license, permit, or equivalent, has been revoked by any other state.

(4) The applicant or its predecessor in business previously held an interstate warehouser permit that was revoked by Alabama and was not pending reinstatement by the Alabama Tax Tribunal within the past 12 months.

(5) The applicant has failed to file or pay any tax administered by the department.

(6) The application is denied for other good cause which shall be detailed in a written response to the applicant by the department .

(e) The department may revoke the permit if the interstate warehouser has violated this chapter or any rules of the department adopted under authority of this article.

(f) An interstate warehouser with the required permit may sell cigarettes and tobacco products without applying the taxes imposed by this article or attaching the state or county revenue stamps, provided that the products are sold to a wholesale dealer who is licensed by the State of Alabama. Additionally, the interstate warehouser must keep in its possession a record of the sale, the original purchase order, a copy of the invoice, a receipt from a common carrier or contract carrier showing shipment for delivery, or, if the interstate warehouser delivers directly to the qualified wholesale dealer, a receipt showing delivery along with the record, original purchase order, and invoice copy related to the sale.

(g) Any person who violates this section shall be subject to a penalty of one thousand dollars ($1,000) multiplied by the total number of violations. This penalty is in addition to any other penalties that may be imposed under this chapter.

(h) Any unstamped tobacco product brought into the state other than by an interstate warehouser, a manufacturer, or an affiliate of a manufacturer for wholesale or retail sale shall be deemed contraband and subject to confiscation and applicable penalties.

(i) The department may adopt rules to implement and administer this section.