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