(a) The proceeds from the tax levied in Section 40-25-81 and the penalties collected under this article shall be remitted to the department, which shall retain the amount necessary to fund the administrative costs of collecting the tax. Except as provided in subsection (b), the balance of the proceeds collected shall be distributed quarterly as follows:
(1) Fifty percent to the State Treasury to the State General Fund.
(2) Twenty-five percent to the counties in the state on the basis of the ratio of the population of each county to the total population of all counties in the state, as determined in the most recent federal census prior to the distribution.
(3) Twenty-five percent to the municipalities in the state on the basis of the ratio of the population of each municipality to the total population of all municipalities in the state, as determined in the most recent federal census prior to distribution.
(b) Notwithstanding subdivisions (a)(2) and (a)(3), no county or municipality that levies a local tax on the sale of consumable vapor products, or substantially similar products, at wholesale or retail may receive a distribution of proceeds pursuant to this section.