CSHB 1(FIN): "An Act relating to taxes on cigarettes and tobacco products; and providing for an effective date."
00CS FOR HOUSE BILL NO. 1(FIN) 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 43.50.090(a) is amended to read: 05 (a) There is levied an excise tax [OF TWO AND ONE-HALF MILLS] on each 06 cigarette imported or acquired in the state. Each licensee shall, at the time of filing 07 the return required by AS 43.50.080, pay to the department the excise for the calendar 08 month covered by the return, deducting four-tenths of one percent of the total tax due, 09 which the licensee shall retain to cover the expense of accounting and filing returns. 10 Cigarettes upon which the excise is imposed are not again subject to the excise when 11 acquired by another person. The excise tax is levied at the following rates: 12 (1) on and after the effective date of this bill section and through 13 June 30, 2000 - 52 1/2 mills; 14 (2) after June 30, 2000, and through June 30, 2003 - 64 1/2 mills;
01 (3) after June 30, 2003, and through June 30, 2006 - 76 1/2 mills; 02 and 03 (4) after June 30, 2006 - 76 1/2 mills plus an additional 12 mills 04 during each succeeding three-year period, the increase to be effective on the first 05 day of the succeeding three-year period . 06 * Sec. 2. AS 43.50.090(a) is amended to read: 07 (a) There is levied an excise tax of two and one-half mills on each cigarette 08 imported or acquired in the state. Each licensee shall, at the time of filing the return 09 required by AS 43.50.080, pay to the department the excise for the calendar month 10 covered by the return, deducting four-tenths of one percent of the total tax due, which 11 the licensee shall retain to cover the expense of accounting and filing returns. 12 Cigarettes upon which the excise is imposed are not again subject to the excise when 13 acquired by another person. [THE EXCISE TAX IS LEVIED AT THE FOLLOWING 14 RATES: 15 (1) ON AND AFTER THE EFFECTIVE DATE OF THIS BILL 16 SECTION AND THROUGH JUNE 30, 2000 - 52 1/2 MILLS; 17 (2) AFTER JUNE 30, 2000, AND THROUGH JUNE 30, 2003 - 64 1/2 18 MILLS; 19 (3) AFTER JUNE 30, 2003, AND THROUGH JUNE 30, 2006 - 76 1/2 20 MILLS; AND 21 (4) AFTER JUNE 30, 2006 - 76 1/2 MILLS PLUS AN ADDITIONAL 22 12 MILLS DURING EACH SUCCEEDING THREE-YEAR PERIOD, THE 23 INCREASE TO BE EFFECTIVE ON THE FIRST DAY OF THE SUCCEEDING 24 THREE-YEAR PERIOD.] 25 * Sec. 3. AS 43.50.090 is amended by adding a new subsection to read: 26 (d) At the time of a change in the amount of tax under (a) of this section, the 27 department shall give public notice of the change. The department shall also provide 28 notification of the change to all persons licensed under this chapter. 29 * Sec. 4. AS 43.50.190(a) is amended to read: 30 (a) On [THERE IS LEVIED AN EXCISE TAX OF 12 MILLS ON] each 31 cigarette imported or acquired in this state , there is levied an excise tax at the
01 following rates: 02 (1) on and after the effective date of this bill section and through 03 June 30, 2000 - 62 mills; 04 (2) after June 30, 2000, and through June 30, 2003 - 74 mills; 05 (3) after June 30, 2003, and through June 30, 2006 - 86 mills; and 06 (4) after June 30, 2006 - 86 mills plus an additional 12 mills during 07 each succeeding three-year period, the increase to be effective on the first day of 08 the succeeding three-year period . 09 * Sec. 5. AS 43.50.190 is amended by adding a new subsection to read: 10 (c) At the time of a change in the amount of tax under (a) of this section, the 11 department shall give public notice of the change. The department shall also provide 12 notification of the change to all persons licensed under this chapter. 13 * Sec. 6. AS 43.50.300 is amended to read: 14 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 15 in the state at the rate of 100 [25] percent of the wholesale price of the tobacco 16 products. The tax is levied when a person 17 (1) brings, or causes to be brought, a tobacco product into the state 18 from outside the state for sale; 19 (2) makes, manufactures, or fabricates a tobacco product in the state 20 for sale in the state; or 21 (3) ships or transports a tobacco product to a retailer in the state for 22 sale by the retailer. 23 * Sec. 7. AS 43.50.300 is amended by adding new subsections to read: 24 (b) The amount in (a) of this section changes, as provided in (b) - (d) of this 25 section, according to and to the extent of changes in the Consumer Price Index for all 26 urban consumers for the Anchorage Metropolitan Area compiled by the Bureau of 27 Labor Statistics, United States Department of Labor. The index for January of 1998 28 is the reference base index. 29 (c) The amount changes on July 1 of each even-numbered year in an amount 30 equal to the percentage of change, calculated to the nearest whole percentage point, 31 between the index for January of that year and the most recent index used to change
01 the amount in (a) of this section. However, the amount does not change if the amount 02 required by (b) - (d) of this section is that currently in effect as a result of earlier 03 application of (b) - (d) of this section. 04 (d) If the index is revised, the percentage of change is calculated on the basis 05 of the revised index. If a revision of the index changes the reference base index, a 06 revised reference base index is determined by multiplying the reference base index 07 applicable by the rebasing factor furnished by the Bureau of Labor Statistics, United 08 States Department of Labor. If the index is superseded, the index referred to in (b) - 09 (d) of this section is the one represented by the Bureau of Labor Statistics as reflecting 10 most accurately changes in the purchasing power of the dollar for Alaska consumers. 11 (e) At the time of a change in the amount of the tax under this section, the 12 department shall promptly give public notice of the change. The department shall also 13 provide notification of a change to all persons licensed under this chapter. 14 * Sec. 8. AS 43.50.330(b) is amended to read: 15 (b) The licensee shall remit with the return the tax due under AS 43.50.300 16 for the month covered by the return, after deducting four-tenths of one percent of the 17 tax due, which the licensee shall retain to cover the expense of accounting and filing 18 the return. 19 * Sec. 9. AS 43.50.090(d), added by sec. 3 of this Act, is repealed. 20 * Sec. 10. CONDITIONAL EFFECT OF CERTAIN SECTIONS. Sections 2, 4, 5, 8, and 21 9 of this Act take effect only if 22 (1) a court enters a final judgment that the amendment made to 23 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the 24 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 25 the proceeds of a state tax or license; and 26 (2) either the time for appeal of that judgment expires or, if an appeal is taken, 27 the court enters a final order on appeal that AS 43.50.090(a), as amended by sec. 1 of this 28 Act, violates art. IX, sec. 7, Constitution of the State of Alaska. 29 * Sec. 11. CONDITIONAL RETROACTIVITY OF CERTAIN PROVISIONS. If secs. 2 30 and 4 of this Act take effect under sec. 10 of this Act, then the amendments to 31 AS 43.50.090(a) and 43.50.190(a) made by secs. 2 and 4 of this Act are retroactive to October
01 1, 1997, and the revenue derived from the levy of mills per cigarette of the tax levied under 02 AS 43.50.090(a), as amended by sec. 1 of this Act, for cigarettes sold after October 1, 1997, 03 that exceeds two and one-half mills shall be credited to the tax levied under AS 43.50.190(a), 04 as amended by sec. 4 of this Act. 05 * Sec. 12. Sections 1, 3, 6, 7, and 8 of this Act take effect October 1, 1997. 06 * Sec. 13. If secs. 2, 4, 5, and 9 of this Act take effect under sec. 10 of this Act, they take 07 effect on the later of (1) the date a court enters a final judgment that the amendment made to 08 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the 09 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 10 the proceeds of a state tax or license, and (2) the expiration of any time for appeal of that 11 judgment, or, if an appeal is taken, upon entry of a final order on the appeal that 12 AS 43.50.090(a), as amended by sec. 1 of this Act, violates art. IX, sec. 7, Constitution of the 13 State of Alaska. The attorney general shall promptly notify the lieutenant governor and the 14 revisor of statutes of a judgment described in this section.