HB 1: "An Act relating to taxes on cigarettes and tobacco products; and providing for an effective date."
00HOUSE BILL NO. 1 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 2000 - 62 mills; 10 (2) after June 30, 2000, and through June 30, 2003 - 74 mills; 11 (3) after June 30, 2003, and through June 30, 2006 - 86 mills; and 12 (4) after June 30, 2006 - 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 products 07 in the state at the rate of 100 [25] percent of the wholesale price of the tobacco 08 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 43.50.300 is amended by adding new subsections to read: 16 (b) The amount in (a) of this section changes, as provided in (b) - (d) of this 17 section, according to and to the extent of changes in the Consumer Price Index for all 18 urban consumers for the Anchorage Metropolitan Area compiled by the Bureau of 19 Labor Statistics, United States Department of Labor. The index for January of 1998 20 is the reference base index. 21 (c) The amount changes 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 (a) of this section. However, the amount does not change if the amount 25 required by (b) - (d) of this section is that currently in effect as a result of earlier 26 application of (b) - (d) of this section. 27 (d) 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 Bureau of Labor Statistics, United 31 States Department of Labor. If the index is superseded, the index referred to in (b) -
01 (d) of this section is the one represented by the Bureau of Labor Statistics as reflecting 02 most accurately changes in the purchasing power of the dollar for Alaska consumers. 03 (e) At the time of a change in the amount of the tax under this section, the 04 department shall promptly give public notice of the change. The department shall also 05 provide notification of a change to all persons licensed under this chapter. 06 * Sec. 5. This Act takes effect October 1, 1997.