CSSB 13(FIN): "An Act relating to taxes on cigarettes and tobacco products, and to the use of the proceeds of those taxes; and providing for an effective date."
00CS FOR SENATE BILL NO. 13(FIN) 01 "An Act relating to taxes on cigarettes and tobacco products, and to the use of 02 the proceeds of those taxes; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. LEGISLATIVE INTENT. It is the intent of the legislature that, of the tax 05 revenue derived 06 (1) from the amendment to the cigarette tax made by sec. 2 of this Act, the 07 amount obtained be deposited into the school fund (AS 43.50.140) and used as required by 08 that section for state support of elementary and secondary education; 09 (2) from the amendment contingently made to the cigarette tax by sec. 4 of this 10 Act, subject to appropriation, the amount obtained be expended for state support of elementary 11 and secondary education; and 12 (3) from the amendment made to the tobacco tax by sec. 5 of this Act, subject 13 to appropriation, the amount obtained be used to establish and maintain an aggressive anti- 14 tobacco campaign targeting children, to be administered by the Department of Health and
01 Social Services, and be used to establish and maintain a program of pass-through grants to 02 municipalities to detect and prosecute those who sell or otherwise supply tobacco to children, 03 to be administered by the Department of Public Safety. 04 * Sec. 2. AS 43.50.090(a) is amended to read: 05 (a) There is levied an excise tax of 38 [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. 12 * Sec. 3. AS 43.50.090(a) is amended to read: 13 (a) There is levied an excise tax of two and one-half [38] mills on each 14 cigarette imported or acquired in the state. Each licensee shall, at the time of filing 15 the return required by AS 43.50.080, pay to the department the excise for the calendar 16 month covered by the return, deducting four-tenths of one percent of the total tax due, 17 which the licensee shall retain to cover the expense of accounting and filing returns. 18 Cigarettes upon which the excise is imposed are not again subject to the excise when 19 acquired by another person. 20 * Sec. 4. AS 43.50.190(a) is amended to read: 21 (a) There is levied an excise tax of 47.5 [12] mills on each cigarette imported 22 or acquired in this state. 23 * Sec. 5. AS 43.50.300 is amended to read: 24 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 25 in the state at the rate of 75 [25] percent of the wholesale price of the tobacco 26 products. The tax is levied when a person 27 (1) brings, or causes to be brought, a tobacco product into the state 28 from outside the state for sale; 29 (2) makes, manufactures, or fabricates a tobacco product in the state 30 for sale in the state; or 31 (3) ships or transports a tobacco product to a retailer in the state for
01 sale by the retailer. 02 * Sec. 6. AS 43.50.330(b) is amended to read: 03 (b) The licensee shall remit with the return the tax due under AS 43.50.300 04 for the month covered by the return, after deducting four-tenths of one percent of the 05 tax due, which the licensee shall retain to cover the expense of accounting and filing 06 the return. 07 * Sec. 7. AS 43.50.350 is amended to read: 08 Sec. 43.50.350. Disposition of proceeds. (a) The tax collected by the 09 department under AS 43.50.300 - 43.50.390 shall be deposited in the general fund. 10 (b) The annual estimated balance in the account maintained by the 11 commissioner of administration under AS 37.05.142 may be used by the legislature to 12 make appropriations 13 (1) for health care, health research, health promotion, and health 14 education programs; 15 (2) to establish and maintain an aggressive anti-tobacco campaign 16 targeting children; and 17 (3) to establish and maintain a program of grants to municipalities 18 to detect and prosecute those who sell or otherwise supply tobacco to children. 19 * Sec. 8. AS 43.50.350 is amended by adding a new subsection to read: 20 (c) The appropriations authorized by (b) of this section are not intended to 21 create a dedication in violation of art. IX, sec. 7, Constitution of the State of Alaska. 22 * Sec. 9. CONDITIONAL EFFECT OF CERTAIN SECTIONS. Sections 3 and 4 of this 23 Act take effect only if 24 (1) a court enters a final judgment that the amendment made to 25 AS 43.50.090(a) by sec. 2 of this Act changing the rate of taxation on cigarettes violates the 26 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 27 the proceeds of a state tax or license; and 28 (2) either the time for appeal of that judgment expires or, if an appeal is taken, 29 the court enters a final order on appeal that AS 43.50.090(a), as amended by sec. 2 of this 30 Act, violates art. IX, sec. 7, Constitution of the State of Alaska. 31 * Sec. 10. RETROACTIVITY. If secs. 3 and 4 of this Act take effect under sec. 9 of this
01 Act, then the amendments to AS 43.50.090(a) and 43.50.190(a) made by secs. 3 and 4 of this 02 Act are retroactive to the effective date of this section and 35.5 mills per cigarette of the tax 03 levied under AS 43.50.090(a), as amended by sec. 2 of this Act, for cigarettes sold on or after 04 the effective date of this section shall be credited to the tax levied under AS 43.50.190(a), as 05 amended by sec. 4 of this Act. 06 * Sec. 11. Sections 1, 2, 5 - 8, and 10 of this Act take effect October 1, 1997. 07 * Sec. 12. If secs. 3 and 4 of this Act take effect under sec. 9 of this Act, they take effect 08 on the later of (1) the date a court enters a final judgment that the amendment made to 09 AS 43.50.090(a) by sec. 2 of this Act changing the rate of taxation on cigarettes violates the 10 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 11 the proceeds of a state tax or license, and (2) the expiration of any time for appeal of that 12 judgment, or upon entry of a final order on the appeal that AS 43.50.090(a), as amended by 13 sec. 2 of this Act, violates art. IX, sec. 7, Constitution of the State of Alaska. The attorney 14 general shall promptly notify the lieutenant governor and the revisor of statutes of a judgment 15 described in this section.