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Alabama Cities Rush to Add Vape Levies as State Says Local and State Taxes Will Stack to 20¢/mL

State revenue officials say municipal add-ons will combine with the 10‑cent state tax, intensifying calls to revisit the framework in the next legislative session.

Overview

  • The Alabama Department of Revenue confirmed that city vape taxes will be added to the state’s 10‑cent‑per‑milliliter levy, resulting in a combined 20 cents per milliliter where both apply.
  • Mobile’s council approved a local tax ahead of an Oct. 1 deadline, with moves also underway in Tuscaloosa and Montgomery as officials seek to secure revenue under the new law.
  • Gulf Shores and Orange Beach set 10 cents per milliliter inside city limits and 5 cents in police jurisdictions, Foley approved 10 cents paid by suppliers, and Fairhope adopted 4 cents inside the city and 2 cents in its police jurisdiction.
  • Local vape sellers warn higher rates could drive customers outside city limits and threaten store viability, citing already reduced shop counts and price-sensitive buyers.
  • Some city ordinances take effect Oct. 1, 2025, but the statewide 10‑cent levy begins Oct. 1, 2026, and cities adopting their own tax will not receive a population‑based share of state collections.