GULF SHORES — The Gulf Shores City Council passed a tax on vapor products on Monday to avoid a state-mandated tax that goes into effect next year.
The legislature passed a statewide tax on vaping products, effective Oct. 1, 2026. The law includes a provision allowing municipalities and counties to impose a local tax on the products, provided they do so by October 1, 2025.
“We could either participate in their share of collections, which would be 25% of their collections, then it would be further divided with our population divided by the collective population of all municipalities in the state, or we could collect our own,” explained Gulf Shores financial services director Anna Franklin.
Now, more cities are rushing to meet the deadline.
Franklin said the city has not yet projected revenue from the tax, but the proceeds will be allocated to the city’s general fund.
In Gulf Shores, there will be a 10-cent tax on products sold in city limits and a 5-cent tax on products sold outside of corporate limits but within the city’s police jurisdiction. There will also be a $150 annual license fee for wholesalers and retailers.
“It was kind of rushed,” Franklin added. “They kind of threw it on us, and it was a rushed decision,” said Franklin.
The council discussed the new tax during a work session, then suspended the rules in Monday’s meeting to pass the ordinance. Councliman Steve Jones voted no on the ordinance.
Other cities that have passed vape tax ordinances include Muscle Shoals, Decatur, Chelsea, Dothan and Orange Beach.
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