Alabama § 40-25-81 - Levy of Tax; Applicability; Exceptions.
Full text of Alabama Code of Alabama § 40-25-81 — Levy of Tax; Applicability; Exceptions., with citation guidance and answers to common questions.
§ 40-25-81. Levy of Tax; Applicability; Exceptions.
(a) Beginning October 1, 2026, there is levied an excise tax upon all consumable vapor products sold at wholesale in this state or imported into this state for use, consumption, or sale at retail. The tax shall be ten cents ($0.10) per milliliter of a consumable vapor product. The tax shall not apply to sales between licensed wholesalers, it being the purpose and intent of this provision that the tax levied is a levy on the ultimate consumer or user of consumable vapor products with the wholesaler acting merely as an agent of the state for the collection and payment of the tax to the state.
(b)(1) Except as provided in subdivision (2), the tax shall be in addition to all other licenses and taxes levied by law.
(2) The tax levied in subsection (a) shall be in lieu of any business license fee measured by the volume of sale for selling consumable vapor products. Any act of the Legislature or resolution by a county commission passed or enacted on or before October 1, 2025, imposing a business license fee on engaging in the business of selling consumable vapor products, is void. Nothing in this section shall be construed to restrict a municipality’s authority to issue a business license pursuant to Article 2 of Chapter 51 of Title 11 on the privilege of doing business as a consumable vapor products wholesaler, importer, or retailer. Any business license issued pursuant to Article 2 of Chapter 51 of Title 11 shall not be measured by the volume of sale for selling consumable vapor products.
(3) Notwithstanding any other provision of this article, an act of the Legislature or an ordinance or resolution by a taxing authority passed or enacted on or before October 1, 2025, imposing or providing for the levy of a local tax or license fee shall remain operative; however, no additional local tax or license fee may be levied on the sale of consumable vapor products after October 1, 2025.
(c) The tax shall not apply to any consumable vapor product exported from this state for which proof of export is available in the form of a bill of lading, shipping document, or invoice.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-25-81
What does Code of Alabama § 40-25-81 cover?
Section 40-25-81 ("Levy of Tax; Applicability; Exceptions.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-25-81?
A common citation format is "Code of Alabama § 40-25-81" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-25-81 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.