The bill SB134 amends the Code of Alabama 1975 to regulate the interstate warehousing and taxation of tobacco products. It introduces the definition of an "interstate warehouser," requiring these operators to obtain a permit from the Department of Revenue, which includes an application process with specific documentation and fees. Key provisions include the establishment of Section 40-25-15.1, which outlines the permit requirements, and the clarification that only licensed wholesalers and distributors may affix tax stamps to tobacco products. The bill also updates existing language regarding the seizure of contraband tobacco, allowing law enforcement to confiscate unstamped products and vehicles used for their transport.

Additionally, the bill modifies existing laws to enhance enforcement and compliance within the tobacco supply chain. It replaces references to the "Department of Revenue" with "department" for clarity and introduces a penalty structure for violations, including escalating fines for repeat offenses. The bill mandates that interstate warehouse operators maintain proper records and comply with reporting requirements, while also allowing for the confiscation of purchases from unregistered sellers. Overall, SB134 aims to strengthen the regulation of tobacco distribution and ensure compliance with taxation laws in Alabama, with an effective date set for October 1, 2026.

Statutes affected:
Introduced: 40-25-1, 40-25-4, 40-25-8, 40-25-8, 40-25-16, 40-25-18, 40-25-25
Engrossed: 40-25-1, 40-25-4, 40-25-8, 40-25-8, 40-25-16, 40-25-18, 40-25-25
Enrolled: 40-25-1, 40-25-4, 40-25-8, 40-25-8, 40-25-16, 40-25-18, 40-25-25