Code of Alabama
Article 1 - Sales Tax.
Section 40-25-5 - Discounts Allowed for Handling Stamps; Consignment of Stamps.

The Department of Revenue is hereby authorized and directed to have prepared and distributed stamps suitable for denoting the tax on all articles enumerated herein. Any person, firm, corporation, or association of persons, other than the Department of Revenue, who sells tobacco tax stamps not affixed to tobacco sold and delivered by them, whether the stamps be genuine or counterfeit, shall be guilty of a felony and punishable as set out in Section 40-25-6. When wholesalers or jobbers have qualified as such with the Department of Revenue, as provided in Section 40-25-16, and desire to purchase stamps as prescribed herein for use on taxable tobaccos sold and delivered by them, the Department of Revenue shall allow on such sales of tobacco tax stamps a discount of 4.75 percent on the entire amount of the sale. Where wholesalers or jobbers are entitled to purchase stamps at a discount as herein provided, instead of the Department of Revenue selling such stamps to such jobbers or wholesalers for cash, it may consign such stamps, if and when such wholesaler or jobber shall give to the Department of Revenue a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned when and as they are used on manufactured tobacco products by such wholesaler or jobber. Every wholesaler or jobber purchasing stamps on consignment as described herein, shall be required to make a full and complete accounting and remittance on or before the twentieth of each month for all stamps used on taxable tobaccos during the preceding month. Every wholesaler or jobber refusing or failing to comply with this section shall forfeit the commission or discount on stamps used which he failed or refused to account or remit for in the time allowed, and in addition shall be charged interest on such delinquent amount for each day delinquent at the rate of eight percent per annum.

Structure Code of Alabama

Code of Alabama

Title 40 - Revenue and Taxation.

Chapter 25 - Tobacco Tax.

Article 1 - Sales Tax.

Section 40-25-1 - Definitions.

Section 40-25-2 - Who Is Liable for Tax; Amount; Local Tax or Fee.

Section 40-25-2.1 - Tax on Cigar Wrappers.

Section 40-25-3 - Design, Name, etc., of Stamps.

Section 40-25-4 - Method and Time of Affixing Stamps.

Section 40-25-4.1 - Wholesalers and Distributors to Affix Stamps.

Section 40-25-5 - Discounts Allowed for Handling Stamps; Consignment of Stamps.

Section 40-25-6 - Fraud in Use or Reuse of Stamps; Counterfeit Stamps.

Section 40-25-7 - Drop Shipments.

Section 40-25-8 - Commodities Subject to Confiscation.

Section 40-25-9 - Procedure When Goods Are Confiscated.

Section 40-25-10 - Department May Compromise Confiscation; Rules and Regulations Governing Interstate Common Carriers.

Section 40-25-11 - Statements of Common Carriers, Contract Carriers, Buses, Etc.

Section 40-25-12 - Enforcement by Inspection; Penalties for Interfering With Inspection.

Section 40-25-13 - Records.

Section 40-25-14 - Filing of Monthly Report and Customs Certificates.

Section 40-25-15 - Nontaxable Sales.

Section 40-25-16 - Persons Not Qualifying as Wholesalers or Jobbers; Permit for Wholesalers or Jobbers; Revocation Procedure.

Section 40-25-16.1 - Monthly Reporting Requirements; Online Listing of Qualified or Registered Entities.

Section 40-25-17 - Sales by Wholesale Dealer.

Section 40-25-18 - Evasion of Stamp Tax.

Section 40-25-19 - Transporting and Distributing Tobacco Products.

Section 40-25-20 - Reusing or Refilling Boxes, Packages and Containers.

Section 40-25-22 - Effect of Federal Legislation.

Section 40-25-23 - Disposition of Funds.

Section 40-25-24 - Sale, Purchase, Receipt, etc., of Goods Not Stamped; Penalty.

Section 40-25-25 - Presumption Arising From Possession of Unstamped Tobacco Products.

Section 40-25-26 - Administration and Enforcement of Article; Examination of Books, Records, Etc.

Section 40-25-27 - Supplies Provided to Department; Expenses Deducted From Collected Taxes.

Section 40-25-28 - Effect of Article on Other Sections.

Section 40-25-29 - Basis of Tax Levy on Cigarettes.