Key Takeaways:
- Alabama municipalities are imposing a 10-cent-per-milliliter tax on vape liquids ahead of a statewide mandate.
- Cities including Orange Beach, Decatur, Dothan, and Muscle Shoals plan to keep the tax revenue local.
- The state tax will apply automatically in communities that do not set their own by October 1, 2026.
Some Alabama cities are moving forward with their own taxes on vape products as a new state law requiring permits for vape sales takes effect. The law allows municipalities to impose a 10-cent-per-milliliter tax on vaping liquids, with a deadline of October 1 to implement local measures.
Orange Beach officials voted to adopt the levy, stating it ensures the community receives all of the revenue rather than just a population-based share of the state tax proceeds. “For us, it’s almost a fairness issue,” said Ford Handley, city administrator and finance director. “We look at vape products very similarly to tobacco. And, if tobacco is being taxed this way, then the vape needs to be taxed the same way.”
Other municipalities, including Decatur, Dothan, and Muscle Shoals, are also implementing the tax. Decatur revenue manager Lori Rossetti said the move is not expected to disrupt local businesses, according to media reports. “We definitely don’t want to run any of our businesses out of town or prevent someone from coming into the city,” she said. “This is something the state was going to do regardless. And we’re just gonna collect it.”
Rossetti mentioned that keeping revenues locally would enable investment in community improvements. “For the city of Decatur, it just means that we won’t be sharing in those proceeds,” she said. “So that we can do more work for beautification, to add facilities for our people, so we can hopefully better benefit the citizens of Decatur.”
Cities that choose not to implement their own vape tax will instead be subject to the state levy when it takes effect on October 1, 2026.
