25 May Alaska: Legislature Deliberates Over Bill to Raise Tobacco Taxes
A raise in tax rates for tobacco and tobacco products in Alaska could soon become law and greatly impact business for retailers in the state. Introduced to the state legislature on May 23, 2016 by Governor Bill Walker (I), and sponsored by the House Rules Committee, the bill, H.B. 4001, increases the tax on cigarettes and tobacco products from 75% to 100% of the wholesale price. The bill also allows for the imposition of additional taxes on cigarettes and tobacco products by permitting states and municipalities to enter into tax agreements. If passed, the new tax rates will be in effect beginning July 1, 2016.
After its supportive introduction by Governor Walker, H.B. 4001 was referred to the House Finance Committee and a hearing was held regarding the bill on May 24, 2016. However, no action was taken at this time. As it currently stands, the bill awaits consideration in the Committee of Referral.
In the Senate, the bill was introduced, then referred to the Senate Labor and Commerce Committee on May 23, 2016. A hearing was held before the committee on May 25, but no action taken and it now awaits further consideration in the Committee of Referral.
The exact text of H.B. 4001 can be found by following this link: http://www.legis.state.ak.us/PDF/29/Bills/HB4001A.PDF
For additional information and to stay up to date on Alaska’s tobacco laws, please visit our legislative website by following this link: http://www.ipcprlegislative.org/state/alaska/