ORDINANCE
NO. 2025-31
AN ORDINANCE TO LEVY A LOCAL EXCISE TAX AND REQUIRE BUSINESS LICENSES FOR THE SALE OF CONSUMABLE VAPOR PRODUCTS IN THE CORPORATE LIMITS OF THE CITY OF
FLORENCE, ALABAMA
WHEREAS, pursuant to Title 11, Chapter 51, Article 2 of the Code of Alabama 1975, as amended, municipalities are granted the authority to license and tax businesses operating within their jurisdiction; and
WHEREAS, Alabama Act 2025-377 further authorizes municipalities to levy a local excise tax on the sale of consumable vapor product as defined in Ala.Code § 40-23-1; and
WHEREAS, the City of Florence desires to establish an excise tax on consumable vapor product wholesalers and retailers, in addition to its business license requirement based on gross receipts for wholesalers and retailers, in accordance with state law.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FLORENCE, ALABAMA, AS FOLLOWS:
Section 1. Definitions.
The following terms, as used in this Ordinance, shall have the respective meanings as follows:
a.”City” shall mean the City of Florence, an Alabama municipal corporation.
b. “Person” shall include every individual, partnership, limited liability company, association, limited liability partnership, or other form of organization engaged in any for-profit or not-for-profit activities.
c. “Consumable Vapor Product” shall mean any solution, liquid, substance, or combination of substances intended for use in a vapor product and that is depleted as the vapor product is used.
d. “Vapor Product” shall mean a device used to heat a consumable vapor product into an aerosol that can be ingested or inhaled, including, but not limited to, e-cigarettes, electronic cigarettes, vape pens, and similar devices.
e. “Wholesaler” shall mean any person who sells consumable vapor products to retailers and not to end-users.
f. “Retailer” shall mean any person who sells consumable vapor products to individual consumers or to the end-user, whether from a storefront or online, and regardless of location.
g.”Gross Receipts” shall mean the total revenue received from the sale of consumable vapor products from all sources and before deductions.
h.”Milliliter (ml)” shall mean one thousandth of a liter, which is typically the unit of measure used for the volume of consumable vapor product sold or distributed.
i.”Business license” shall mean an annual license based on gross receipts issued by the City for the privilege of doing business as a wholesaler or retailer of consumable vapor product.
Section 2. Excise Tax
Imposed.
Every person who sells consumable vapor product within the corporate limits of the City, whether as a retailer, wholesaler, or both, shall pay an excise tax to the City of ten cents ($0.10) per milliliter (ml) of consumable vapor product sold or delivered by them within the corporate limits of the City.
Section 3. Exemptions from Excise Tax.
The excise tax established in Section 2 of this Ordinance shall only be charged one time on each unit of consumable vapor product, thus, if a wholesaler or retailer purchases consumable vapor product from a wholesaler who has already paid the City the excise tax as outlined in Section 2 above, no additional excise tax on the re-sale of such consumable vapor product shall be owed. However, to qualify for this exemption, such person must submit a sworn written statement to the City Clerk-Treasurer or his designee by the 20th of each month, detailing:
a.All purchases of consumable vapor product made by such person in the preceding calendar month (wholesaler’s name, address, date of purchase, description of products, quantity of products); and
b.Proof of the payment of the excise tax for the consumable vapor product by the wholesaler to the City.
Section 4. Monthly Statement of Sales Required.
Each wholesaler or retailer of consumable vapor products shall submit a sworn written statement with payment to the City Clerk-Treasurer or his designee by the 20th day of each month, providing the quantity in milliliters (ml) of all consumable vapor product sold or delivered by them within the corporate limits of the City.
Section 5. Required
Licenses.
Each person desiring to engage in the wholesale or retail sale of consumable vapor product in the City must first obtain a business license from the City under the provisions of its current Business License Ordinance. The amount of excise tax provided for herein shall be in addition to all amounts required to be paid for the aforementioned licenses.
Section 6. Out of City Wholesalers or Retailers.
Wholesalers or retailers without a physical business location in the City who sell or deliver consumable vapor product within the corporate limits of the City must first obtain an appropriate City business license and must fully comply with the filing and tax remittance requirements of this Ordinance.
Section 7. Payment Deadlines and Penalties.
The excise tax imposed by this Ordinance is due on the 1st day of each month and must be paid no later than the 20th day of the same month. Failure to file and/or pay on time shall be considered a continuing offense, and each day shall constitute a separate offense. A 20% penalty shall be added to any delinquent tax payment.
Section 8. Duty to permit inspection and produce records.
Upon demand, it shall be the duty of all persons selling or distributing consumable vapor product in the corporate limits of the City to:
a.Permit the designee of the City to enter and to inspect all portions of their place or places of business for the purposes of enabling said municipal designee to gain such information as may be necessary or convenient for determining the proper license classification, determining the correct amount of the excise tax, and/or determining their compliance with City ordinances, codes, and regulations; and
b. Furnish information, during reasonable business hours, at the person’s place or places of business, including all books of account, invoices, papers, reports and memoranda containing entries showing amounts of purchases, sales receipts, inventory and other information from which the correct license tax classification of such person may be ascertained and the correct amount of excise tax to which they are subject may be determined, including exhibition of bank deposit books, bank statements, and copies of sales tax returns to the State of Alabama. Refusal to provide these documents is a violation of this Ordinance.
Section 9. Penalties for Violations.
Any person who violates any provision of this Ordinance shall be subject to a fine of up to $500.00 per offense, with each day constituting a separate offense.
Section 10. Effective Date.
This Ordinance shall become effective upon its adoption and lawful publication.
Section 11. Severability.
Each section, clause, sentence, and paragraph of this Ordinance is severable. If any part is found unconstitutional, the remaining portions shall remain in effect.
BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF THE CITY OF FLORENCE, ALABAMA, that the City Clerk-Treasurer is hereby authorized and directed to publish this ordinance in the TimesDaily, and this ordinance shall go into effect upon its passage, approval, and publication as provided by law.
ADOPTED this 30th day of September, 2025.
/s/ Kaytrina Simmons
/s/ Jackie Hendrix
/s/ Bill Griffin
/s/ Blake Edwards
/s/ Jimmy Oliver
CITY COUNCIL
APPROVED this 30th day of September, 2025.
/s/ Andrew Betterton
MAYOR
ADOPTED & APPROVED this 30th day of September, 2025.
/s/ Robert M. Leyde
CITY CLERK -
TREASURER
October 3, 2025
ADID666702