Dothan, AL Business Licensing & Operations: Tobacco Retail License (2026)
Key Facts
- License tax rate
- $0.10 per milliliter sold or delivered
- Filing deadline
- 20th of each month, sworn statement
- Max fine
- $500.00 per offense per day
- No local storefront
- Must get city business license first (§94-164)
- Adopted
- Ordinance No. 2025-207, September 2, 2025
Summary
Every distributor or seller of consumable vapor products in Dothan must pay a city license tax of $0.10 per milliliter sold or delivered within the corporate limits, under City Code § 94-161, adopted by Ordinance No. 2025-207 on September 2, 2025. Out-of-town distributors with no local storefront must first obtain a city business license before making any sale.
Every distributor or seller shall pay a license tax to the city, and a license tax is hereby fixed and created, which license tax shall be a sum and amount equal to $0.10 per milliliter of consumable vapor product sold or delivered within the corporate limits of the city. ... It shall be unlawful for any distributor having no place of business within the corporate limits of the city to make any sales or deliveries of consumable vapor product therein, without first obtaining a business license from the City of Dothan or their designee, and any such seller or distributor shall be liable for and shall pay the same license tax as that fixed and levied in section 94-161 of this article. ... Whoever shall violate any provision of this article shall, for each offense and for each and every day that such offense be subject to a fine of not more than $500.00 and revocation of their business license and such further penalties as are provided by law.
Full Breakdown
Dothan's Article V vapor product tax, added by Ordinance No. 2025-207 on September 2, 2025, treats every retailer and distributor of e-cigarettes, vape pens, and nicotine liquid solutions as a licensee: § 94-161 fixes the license tax at $0.10 for every milliliter of consumable vapor product sold or delivered inside the city limits. A seller who buys already-taxed product from another licensed distributor does not pay the tax twice; § 94-162 exempts those downstream purchases, but only if the seller files a sworn statement with the City of Dothan by the 20th of each month listing every such purchase.
Every distributor, exempt or not, must also file a monthly sworn statement under § 94-163 breaking out milliliters sold to consumers versus milliliters sold to other distributors. A distributor with no physical location inside the city cannot legally sell or deliver vapor products in Dothan at all, per § 94-164, until it first obtains a business license from the city or its designee and agrees to pay the same $0.10-per-milliliter tax. The license tax itself is due on the 20th of each month, matching the filing deadline, and § 94-166 adds penalties and interest on top of the tax for anyone who misses it. The city can also demand books, invoices, and bank records at any time under § 94-167 to verify the reported volumes.
Violations & Fines
Missing the 20th-of-the-month filing or payment deadline, or filing a false statement, is a continuing offense under §§ 94-165 and 94-166: each day the default continues counts as a separate violation. Section 94-168 caps the fine at $500.00 per offense per day and adds revocation of the seller's business license on top of the fine, plus any further penalties allowed by law.
Frequently Asked Questions
Do vape shops in Dothan need a special city license?
What happens if a vape retailer skips the monthly filing?
Does the tax apply twice if a retailer buys from an already-licensed distributor?
Sources & Official References
Other rules in Dothan
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