1. (a) Persons failing to properly affix the required stamps to any cigars, cheroots, stogies, cigarettes, smoking tobacco, heated tobacco products, chewing tobacco, and snuff shall be required to pay, as part of the tax imposed under this article, a penalty of not less than twenty-five dollars ($25) per article on the first violation, two hundred fifty dollars ($250) per article on the second violation, and five hundred dollars ($500) per article on the third and subsequent violations. Each article or commodity without the proper stamps affixed as required shall be considered a separate offense. Any cigars, cheroots, stogies, cigarettes, smoking tobacco, heated tobacco products, chewing tobacco, and snuff at a place of business of any person required by this article to stamp the products shall be prima facie evidence that they are intended for sale. The Department of Revenue, upon good cause shown, may waive or reduce any penalty or any part of a penalty provided for in this section. Any person who has been found guilty of violating this article and who, after being punished by fine, penalty, assessment, or imprisonment, is found guilty of a second or subsequent violation of this article shall have his or her license, as provided in Sections 40-12-72 and 40-12-73, revoked by the department, and no further license or permit shall be issued or granted to that person for a period of one year from the date the license or permit has been revoked. Notice of the revocation shall be mailed to the judge of probate and license inspector of the county in which the revocation was made.
2. (b) In addition to the penalty levied by the department pursuant to subsection (a), the county license inspector, license commissioner, revenue commissioner, tax assessor, or tax collector of the county in which the untaxed tobacco product is located may assess a penalty against any person failing to affix the required stamps to any cigars, cheroots, stogies, cigarettes, smoking tobacco, heated tobacco products, or snuff. The additional penalty shall not be less than one hundred dollars ($100) nor more than five hundred dollars ($500).
3. (c) The department and the local taxing official may assess the tax levied by this chapter pursuant to the assessment procedures set out in Chapter 2A of this title.

(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §732; Acts 1953, No. 738, p. 1001; Acts 1992, No. 92-186, p. 349, §71; Acts 1994, No. 94-685, p. 1318, §1; Act 2025-448, §1; Act 2026-50, §1.)