Opening a Convenience Store in Alabama: Licenses & Permits

Alabama changed its tobacco and vape rules in 2025, and the change reaches into the floor plan: a store that gives 20% or more of its floor or shelf space to vapes, or has any self-service vape display, becomes a specialty vape retailer with a 21-and-over entry rule. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: ADEM

The Alabama Department of Environmental Management regulates tanks under Admin. Code 335-6-15:

• Before installation: ADEM's form asks for notice 30 days before installing or modifying a tank, and installation must be supervised by a certified installer.
• Registration and fees: tanks are registered with ADEM, and an annual UST regulatory fee is paid through ADEM's CUSTARD portal.
• Operators: Class A, B and C operators are required, and ADEM keeps a list of approved trainers.
• Trust fund: the Alabama Tank Trust Fund covers motor fuel tanks whose owners register, pay their fees and stay in compliance. It's funded by a per-gallon charge collected by the Department of Revenue.

Beer and wine: ABC Board and local approval

Alabama convenience stores sell alcohol under two ABC Board licenses, each $150:

• 050 Retail Beer (off-premises only).
• 070 Retail Table Wine (off-premises only). Table wine is 24% alcohol or less.

You give a copy of your application to the local government, which sends its decision to the ABC Board in writing. Beer and wine licensees may also sell through a drive-up or walk-up window if they post an 18-by-24-inch sign, provide exterior lighting and check ID for every occupant when needed.

Wet and dry areas: the ABC Board's November 2025 list shows 44 wet counties and 23 dry counties, and each dry county contains wet cities. Local ordinances may also set distances from churches and schools, so ask your city or county.

No spirits on the sales floor. A private package store needs at least 500 sq ft for alcohol display and sales and can't sell general groceries. A separate room with its own entrance needs its own license.

Tobacco and vapes: the 2025 law

Act 2025-403, effective June 1, 2025, rewrote Alabama's tobacco and vape rules:

• Tobacco permit: each location needs an ABC Board permit, $150 a year plus a one-time $50 filing fee. Point-of-sale warning signs are required.
• No self-service displays: tobacco and vape products can't be on self-service display outside tobacco specialty and vape stores, and vending machines are banned.
• Vapes in regular stores: only FDA-authorized vapes may be sold.
• Specialty vape retailers: a $1,000 annual license, entry limited to people 21 and over with ID scanning at the door. A store counts as a specialty retailer if, among other tests, 20% or more of its floor or shelf space goes to vapes or it has a self-service vape display.
• Directory: since October 1, 2025, only US-made or FDA-authorized products can be added to the Department of Revenue directory. Retailers selling unlisted products face penalties of $1,000, $2,500 and $5,000.

Food service: the county health department

Food permits are issued by county health departments under Alabama Department of Public Health rule 420-3-22, and convenience stores are inspected. ADPH says plans, the plan review application and the fee must be approved before construction starts. Permits renew every year, and fees vary by county.

Sales tax, fuel pumps and lottery

• Sales tax: register through the Department of Revenue's My Alabama Taxes portal. There is no fee.
• Fuel pumps: the Department of Agriculture and Industries handles device registration and the fuel permit. Licensed service technicians test pumps under its oversight, and the department reports inspecting 104,100 pumps and meters in fiscal 2025.
• Lottery: none. Section 65 of the Alabama Constitution prohibits lotteries.

What this means for your store design

• Put tobacco and vapes behind the counter. Self-service displays aren't allowed, so plan back-bar or locked cases at checkout.
• Keep vape space under the specialty-retailer line. At 20% or more of floor or shelf space you become a specialty vape retailer with 21-and-over entry. Measure the vape fixtures on the plan.
• Consider a walk-up or drive-up window. Beer and wine can be sold through one with the required sign and lighting, which affects the storefront and site plan.
• Plan liquor as a separate store. A package store needs its own 500+ sq ft of alcohol space, no groceries and its own license if it has its own entrance.
• Check wet or dry status by city, not county. Do it during site selection.

Local approvals

Your city or county also controls zoning, building permits, fire inspections, signs and local alcohol approval. Our construction checklist covers the local steps.

For Alabama store design, see convenience store design in Alabama and walk-in cooler services in Alabama.

Sources

• Alabama Department of Environmental Management, UST compliance, Admin. Code 335-6-15, and Alabama Tank Trust Fund guidance (February 2024).
• Alabama ABC Board, license types and fees, wet cities list (November 2025), administrative rules inventory, and specialty ENDS retailer licensing.
• Act 2025-403 (HB8, 2025 Regular Session, enrolled).
• Alabama Department of Public Health, food and lodging.
• Alabama Department of Revenue, tax account registration FAQ.
• Alabama Department of Agriculture and Industries, weights and measures.
• HB448 (2026 Regular Session, introduced).

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.