HB 431: "An Act relating to taxes on cigarettes and tobacco products; and providing for an effective date."
00HOUSE BILL NO. 431 01 "An Act relating to taxes on cigarettes and tobacco products; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.50.190(a) is amended to read: 05 (a) On [THERE IS LEVIED AN EXCISE TAX OF 12 MILLS ON] each 06 cigarette imported or acquired in this state, there is levied an excise tax at the 07 following rates: 08 (1) on and after the effective date of this Act and through June 30, 09 1999 - 62 mills; 10 (2) after June 30, 1999, and through June 30, 2002 - 74 mills; 11 (3) after June 30, 2002, and through June 30, 2005 - 86 mills; and 12 (4) after June 30, 2005 - 86 mills plus an additional 12 mills during 13 each succeeding three-year period, the increase to be effective on the first day of 14 the succeeding three-year period.
01 * Sec. 2. AS 43.50.190 is amended by adding a new subsection to read: 02 (c) At the time of a change in the amount of tax under (a) of this section, the 03 department shall give public notice of the change. The department shall also provide 04 notification of the change to all persons licensed under this chapter. 05 * Sec. 3. AS 43.50.300 is amended to read: 06 Sec. 43.50.300. EXCISE TAX LEVIED. An excise tax is levied on tobacco 07 products in the state at the rate of 100  percent of the wholesale price of the 08 tobacco products. The tax is levied when a person 09 (1) brings, or causes to be brought, a tobacco product into the state 10 from outside the state for sale; 11 (2) makes, manufactures, or fabricates a tobacco product in the state 12 for sale in the state; or 13 (3) ships or transports a tobacco product to a retailer in the state for 14 sale by the retailer. 15 * Sec. 4. AS 43.50 is amended by adding a new section to read: 16 Sec. 43.50.365. TAX ADJUSTMENT. (a) The amount in AS 43.50.300 17 changes, as provided in this section, according to and to the extent of changes in the 18 Consumer Price Index for all urban consumers for the Anchorage Metropolitan Area 19 compiled by the Bureau of Labor Statistics, United States Department of Labor. The 20 index for January of 1997 is the reference base index. 21 (b) The amounts change on July 1 of each even-numbered year in an amount 22 equal to the percentage of change, calculated to the nearest whole percentage point, 23 between the index for January of that year and the most recent index used to change 24 the amount in AS 43.50.300. However, the amounts do not change if the amounts 25 required by this section are those currently in effect as a result of earlier application 26 of this section. 27 (c) If the index is revised, the percentage of change is calculated on the basis 28 of the revised index. If a revision of the index changes the reference base index, a 29 revised reference base index is determined by multiplying the reference base index 30 applicable by the rebasing factor furnished by the United States Bureau of Labor 31 Statistics. If the index is superseded, the index referred to in this section is the one
01 represented by the Bureau of Labor Statistics as reflecting most accurately changes in 02 the purchasing power of the dollar for Alaskan consumers. 03 * Sec. 5. AS 43.50 is amended by adding a new section to read: 04 Sec. 43.50.380. NOTICE. At the time of a change in the amount of the tax 05 under AS 43.50.365, the department shall promptly give public notice of the change. 06 The department shall also provide notification of a change to all persons licensed under 07 this chapter. 08 * Sec. 6. This Act takes effect October 1, 1996.