Title
AN ORDINANCE TO LEVY A LOCAL EXCISE TAX AND REQUIRE BUSINESS LICENSES FOR THE SALE OF CONSUMABLE VAPOR PRODUCTS IN THE CORPORATE LIMITS AND POLICE JURISDICTION OF THE CITY OF FOLEY
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)The Alabama Legislature recently passed Act 2025-377, which imposes a state excise tax of $0.10 per milliliter on consumable vapor products beginning October 1, 2026. However, the more urgent impact for us is that after October 1, 2025, municipalities will lose the ability to levy local license fees or taxes based on volume sold or gross receipts for these products. To preserve Foley’s full taxing authority, we must enact a local ordinance before October 1, 2025. This would allow us to: Impose a local excise tax on vapor wholesalers (e.g., $0.10 per milliliter), and require a business license for vapor product wholesalers and retailers, based on gross receipts. These steps would establish a sustainable revenue stream for Foley and ensure our ordinance is grandfathered in under the new state law. If we delay action beyond October 1, 2025, our only remaining option would be a flat-rate license that cannot be used to generate meaningful revenue and the city would receive only a portion of the State's fees (based on population). I have prepared a draft ordinance which was vetted by Casey Pipes.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and descri...
Click here for full text