New Tobacco Permit for Interstate Warehousers
Summary
The Alabama Department of Revenue has announced a new 'Interstate Warehouser' tobacco permit requirement, effective October 1, 2026. This permit is for entities purchasing tobacco products directly from manufacturers for resale to permitted Alabama wholesalers, with an initial application fee of $2,000.
What changed
Effective October 1, 2026, Alabama Act 2026-50 introduces a new tobacco license classification, the 'Interstate Warehouser Permit,' for entities purchasing tobacco products directly from manufacturers and selling them to permitted Alabama wholesalers. Applicants must submit a detailed annual application including proof of licensing in four other states, an Alabama Certificate of Authority if applicable, contracts with Alabama wholesalers, audited financial statements, and pay an initial non-refundable fee of $2,000. An annual renewal fee of $500 is due each October 1.
Failure to obtain the permit before shipping tobacco products into Alabama will result in penalties, including confiscation of products. Regulated entities must ensure they meet all application requirements and submit their applications and fees by the October 1 deadline to avoid permit dismissal or the need to reapply with the initial fee. The Alabama DOR will provide further implementation details.
What to do next
- Obtain an Interstate Warehouser Permit if purchasing tobacco products directly from manufacturers for resale to Alabama wholesalers.
- Submit the required annual application, supporting documents, and $2,000 initial fee by October 1, 2026.
- Ensure annual renewal applications and $500 fee are submitted by October 1 each year thereafter.
Penalties
Penalties include confiscation of tobacco products. Failure to submit annual renewal application and fee by October 1 constitutes voluntary dismissal of the permit; a new application with the $2,000 initial fee is required if cancelled.
Source document (simplified)
NOTICE Interstate Warehouser Permit
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Category Notices Related Division Business and License
Posted: March 27, 2026 Effective October 1, 2026, Act 2026-50 amends various sections of Title 40, Chapter 25, and creates a new tobacco license classification — Interstate Warehouser. An interstate warehouser is defined as “a person who purchases tobacco products directly from the manufacturer or an affiliate of the manufacturer and, solely for resale, sells any one or more of the articles taxed under this article to a permitted wholesaler dealer who is qualified under §40-25-16.” Interstate warehousers are required to secure an Interstate Warehouser Permit prior to shipping any tobacco products into Alabama or be subject to penalties including confiscation of the tobacco products.
To secure an Interstate Warehouser Permit, taxpayers must complete an annual application that includes the following:
- A copy of the current wholesale licenses or permits or their equivalent, issued by at least four states other than Alabama.
- A current Certificate of Authority issued by the Alabama Secretary of State if the applicant is not registered in Alabama as a domestic entity.
- The name(s) and address(es) of each permitted wholesaler within this state to whom the applicant will be delivering tobacco products.
- A copy of any contracts between the applicant and the permitted wholesalers in Alabama regarding the potential sale of tobacco products within this state.
- A copy of the most recent audited financial statements from a certified public accountant or a firm regularly engaged in the auditing of financial records.
- A non-refundable permit fee of $2,000 for the initial application. An annual permit renewal fee of $500 shall be due on October 1 of each year along with the annual renewal application. Failure to submit the annual renewal application and fee by October 1 shall constitute a voluntary dismissal of the interstate warehouser permit. If a permit is cancelled, a new application along with the $2,000 initial application fee is required. Prior to the effective date, ALDOR will provide additional information regarding implementation of this act.
Contact
Business and License Tax Division
Tobacco Tax Section
PO BOX 327555
MONTGOMERY AL 36132-7555
334-242-9627
Tobacco.Account@revenue.alabama.gov
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