HB 1001: "An Act relating to taxes on cigarettes and tobacco products, to tax stamps on cigarettes, to forfeiture of cigarettes and of property used in the manufacture, transportation, possession, or sale of unstamped cigarettes, to accounting for and use of part of the proceeds of the additional cigarette tax, and to licenses and licensees under the Cigarette Tax Act; relating to unfair cigarette sales; and providing for an effective date."
00 HOUSE BILL NO. 1001 01 "An Act relating to taxes on cigarettes and tobacco products, to tax stamps on 02 cigarettes, to forfeiture of cigarettes and of property used in the manufacture, 03 transportation, possession, or sale of unstamped cigarettes, to accounting for and use of 04 part of the proceeds of the additional cigarette tax, and to licenses and licensees under 05 the Cigarette Tax Act; relating to unfair cigarette sales; and providing for an effective 06 date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 INTENT. It is the intent of the legislature to provide aggregate funding to meet the 11 minimum amount of tobacco control programs recommended by the United States 12 Department of Health and Human Services, Centers for Disease Control and Prevention, from 13 tobacco taxes and other revenue sources accounted for in the tobacco use education and
01 cessation fund established in AS 37.05.580. 02 * Sec. 2. AS 43.50.030(a) is amended to read: 03 (a) For each license issued to a manufacturer, and for each renewal, the fee is 04 $50 [$5]. 05 * Sec. 3. AS 43.50.030(c) is amended to read: 06 (c) For each license issued to a vending machine operator, and for each 07 renewal, the fee is $50 [$25]. 08 * Sec. 4. AS 43.50.030(d) is amended to read: 09 (d) For each license issued to a direct-buying retailer, and for each renewal, 10 the fee is $50 [$25]. 11 * Sec. 5. AS 43.50.035 is repealed and reenacted to read: 12 Sec. 43.50.035. Wholesaler-distributor license. (a) A person outside of this 13 state who sells or distributes cigarettes into this state and is not required to be licensed 14 under AS 43.50.010 may apply for a wholesaler-distributor license. 15 (b) A person outside of this state who sells or distributes cigarettes into this 16 state, who is not required to be licensed under AS 43.50.010, and who wishes to 17 purchase stamps under this chapter is required to be licensed as a wholesaler- 18 distributor. 19 (c) The department shall adopt reasonable regulations necessary for the 20 collection of cigarette taxes on cigarette sales or distributions made by a wholesaler- 21 distributor licensee into this state and standards for 22 (1) application and issuance of the license; and 23 (2) refusal to issue the license. 24 * Sec. 6. AS 43.50.090(a) is amended to read: 25 (a) There is levied an excise tax of 38 mills on each cigarette imported or 26 acquired in the state. The tax shall be paid through the use of stamps as provided in 27 AS 43.50.500 - 43.50.700. A person who imports or acquires cigarettes in the 28 state upon which a stamp required by this chapter has not been affixed in 29 accordance with AS 43.50.500 - 43.50.700, who fails to apply to purchase stamps 30 as required by AS 43.50.540(a), and who fails to pay the tax through the use of 31 stamps is not relieved [THE FAILURE TO PAY THE TAX THROUGH THE USE
01 OF STAMPS DOES NOT RELIEVE A PERSON] of the obligation to pay taxes due 02 under this chapter. The person shall still pay the tax, and the tax is due on or before 03 the end of the month following the month in which cigarettes were manufactured, 04 imported, acquired, or sold in this state. Cigarettes upon which the excise is imposed 05 are not again subject to the excise when acquired by another person. 06 * Sec. 7. AS 43.50.090(d) is amended to read: 07 (d) The tax imposed under (a) of this section does not apply to the first 400 08 cigarettes personally transported into the state by an individual for that 09 individual's personal consumption [100 CIGARETTES IMPORTED BY AN 10 INDIVIDUAL FOR PERSONAL CONSUMPTION] during the calendar month. 11 * Sec. 8. AS 43.50.105(g) is amended to read: 12 (g) A person who violates the provisions of this section is guilty of a 13 (1) class A misdemeanor if the person unlawfully ships, causes to be 14 shipped, or transports at least one but fewer than 5,000 [1,000] cigarettes; 15 (2) class C felony if the person unlawfully ships, causes to be shipped, 16 or transports 5,000 [1,000] or more cigarettes. 17 * Sec. 9. AS 43.50.105 is amended by adding a new subsection to read: 18 (i) A person who violates the provisions of this section is jointly and severally 19 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 20 permitted by the Constitution of the United States, a person who violates the 21 provisions of this section is required to collect the taxes and pay them to the 22 department. 23 * Sec. 10. AS 43.50.170(1) is amended to read: 24 (1) "buyer" means a person who imports or acquires cigarettes for the 25 person's own consumption from any source other than a manufacturer, distributor, 26 direct-buying retailer, [OR] retailer, or wholesaler-distributor; 27 * Sec. 11. AS 43.50.170(3) is amended to read: 28 (3) "direct-buying retailer" means a person who is engaged in the sale 29 of cigarettes at retail in this state, and who brings cigarettes or causes cigarettes to be 30 brought [CIGARETTES] into the state that are not purchased from a wholesaler- 31 distributor;
01 * Sec. 12. AS 43.50.170(4) is amended to read: 02 (4) "distributor" means a person who brings cigarettes that are not 03 purchased from a wholesaler-distributor, or has cigarettes that are not purchased 04 from a wholesaler-distributor brought into the state, and who sells or distributes at 05 least 75 percent [PER CENT] of the cigarettes to others for resale in the state; 06 * Sec. 13. AS 43.50.170(12) is amended to read: 07 (12) "wholesaler-distributor" means a person outside this state who 08 sells or distributes cigarettes into this state, [AND] who is not required to be licensed 09 under AS 43.50.010, and who is licensed under AS 43.50.035. 10 * Sec. 14. AS 43.50.190(a) is amended to read: 11 (a) There is levied an excise tax of 62 [12] mills on each cigarette imported or 12 acquired in this state. 13 * Sec. 15. AS 43.50.190(c) is amended to read: 14 (c) The tax imposed under (a) of this section does not apply to the first 400 15 cigarettes personally transported into the state by an individual for that 16 individual's personal consumption [100 CIGARETTES IMPORTED BY AN 17 INDIVIDUAL FOR PERSONAL CONSUMPTION] during the calendar month. 18 * Sec. 16. AS 43.50.190 is amended by adding a new subsection to read: 19 (d) Notwithstanding (b) of this section, a portion of the annual proceeds of the 20 tax levied under (a) of this section equal to 8.9 percent of the total proceeds of the tax 21 shall be deposited into the tobacco use education and cessation fund established in 22 AS 37.05.580. This deposit shall be in addition to any sums deposited into the fund 23 under AS 37.05.580(a). 24 * Sec. 17. AS 43.50.300 is amended to read: 25 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco 26 products in the state at the rate of 100 [75] percent of the wholesale price of the 27 tobacco products. The tax is levied when a person 28 (1) brings, or causes to be brought, a tobacco product into the state 29 from outside the state for sale; 30 (2) makes, manufactures, or fabricates a tobacco product in the state 31 for sale in the state; [OR]
01 (3) ships or transports a tobacco product to a retailer in the state for 02 sale by the retailer or to an individual for personal consumption; or 03 (4) brings, or causes to be brought, a tobacco product into the state 04 from outside the state for personal consumption. 05 * Sec. 18. AS 43.50.320(a) is repealed and reenacted to read: 06 (a) Except as provided in (g) of this section, a person engaging in an activity 07 described in AS 43.50.300(1) - (3) must be licensed by the department as a distributor, 08 and a person engaging in an activity described in AS 43.50.300(4) must be licensed as 09 a buyer. 10 * Sec. 19. AS 43.50.320(b) is amended to read: 11 (b) The department, upon application and payment of a fee of $50, shall issue 12 a license for one year to a person who applies for a distributor license [UNDER (a) 13 OF THIS SECTION]. The department, upon application and payment of a fee of 14 $25, shall issue a license for one year to a person who applies for a buyer license. 15 * Sec. 20. AS 43.50.320(d) is amended to read: 16 (d) A distributor license issued under this section must include the name and 17 address of the licensee, the type of business to be conducted, and the year for which 18 the license is issued. 19 * Sec. 21. AS 43.50.320(e) is amended to read: 20 (e) The department may renew a distributor license issued under this section 21 for a fee of $50. The department may renew a buyer license issued under this 22 section for a fee of $25. 23 * Sec. 22. AS 43.50.330(a) is amended to read: 24 (a) On or before the last day of each calendar month, a licensee shall file a 25 return with the department. The return must state the number or amount of tobacco 26 products sold or imported for personal consumption by the licensee during the 27 preceding calendar month, the selling price or purchase price of the tobacco 28 products, and the amount of tax imposed on the tobacco products. 29 * Sec. 23. AS 43.50.390(1) is amended to read: 30 (1) "distributor" means a person who 31 (A) brings, or causes to be brought, a tobacco product into the
01 state from outside the state for sale; 02 (B) makes, manufactures, or fabricates a tobacco product in the 03 state for sale in the state; or 04 (C) ships or transports a tobacco product to a retailer in the 05 state for sale by the retailer or to an individual for personal consumption; 06 * Sec. 24. AS 43.50.390(2) is amended to read: 07 (2) "licensee" means a distributor or buyer who is 08 (A) licensed under AS 43.50.320; or 09 (B) exempted by AS 43.50.320(g) from licensing under 10 AS 43.50.320; 11 * Sec. 25. AS 43.50.390 is amended by adding a new paragraph to read: 12 (6) "buyer" means a person who imports tobacco products for the 13 person's own consumption from any source other than a licensee. 14 * Sec. 26. AS 43.50.540(f) is amended to read: 15 (f) Title to the stamps passes immediately to the licensee at the time the 16 stamps are obtained in person or, if the stamps are shipped or transported, at the time 17 the stamps are placed in the United States mail or received by the common or private 18 carrier. The licensee bears all costs associated with shipping or transporting the 19 stamps. The department may replace stamps lost or damaged in transit if the 20 licensee provides proof acceptable to the department verifying that the loss or 21 damage occurred while the stamps were in the possession of the shipping 22 company and the shipping company substantiates the loss or damage. Damaged 23 stamps must be returned to the department before the department may replace 24 them [AND ALL RISKS OF POSSIBLE LOSS OR DAMAGE WHILE IN 25 TRANSIT]. 26 * Sec. 27. AS 43.50.550(b) is amended to read: 27 (b) A licensee who submits an application for the purchase of stamps on a 28 deferred-payment basis shall, as a condition of approval of the application, post a 29 bond acceptable to the department in an amount equal to 30 (1) 200 percent of the maximum dollar amount of allowed monthly 31 purchases under this section; or
01 (2) 100 percent of the maximum dollar amount of allowed monthly 02 purchases under this section if the licensee 03 (A) holds a license issued under AS 43.50.010 for a physical 04 location in this state; and 05 (B) has been in full compliance with the provisions of this 06 title and regulations adopted under this title during the preceding 60 07 months [AS A CONDITION OF APPROVAL OF THE APPLICATION]. 08 * Sec. 28. AS 43.50.580(b) is amended to read: 09 (b) A licensee may possess unstamped cigarettes in this state if 10 (1) the licensee posts a surety bond in an amount satisfactory to the 11 department to ensure performance of its duties under this chapter; and 12 (2) unstamped cigarettes are necessary for the conduct of the licensee's 13 business in making sales or distributions 14 (A) to an instrumentality of the federal government or an 15 Indian tribal organization authorized by law to possess cigarettes not taxed 16 under this chapter; or 17 (B) to customers outside the state and the licensee provides 18 proof acceptable to the department that the licensee is properly licensed in 19 the jurisdictions outside the state where the sales or distributions are 20 made. 21 * Sec. 29. AS 43.50.590(a) is amended to read: 22 (a) The department shall adopt procedures for a refund or credit to a licensee 23 in the amount of the denominated value, less the discount given under AS 43.50.540, 24 for 25 (1) unused or damaged stamps; [OR] 26 (2) stamps affixed to cigarette packages that have become unfit for use 27 or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 28 the licensee provides proof acceptable to the department that the cigarettes have not 29 been and will not be consumed in this state; or 30 (3) stamps affixed to cigarette packages that are sold or 31 distributed outside the state if the licensee provides proof acceptable to the
01 department that the cigarettes have not been and will not be consumed in this 02 state and the licensee is properly licensed in the jurisdictions outside the state 03 where the sales or distributions are made. 04 * Sec. 30. AS 43.50 is amended by adding a new section to read: 05 Sec. 43.50.625. Forfeiture of other property. (a) Upon a showing of 06 probable cause that a person has committed the crime of misconduct involving 07 unstamped cigarettes or stamps in the first degree under AS 43.50.640, the following 08 are subject to forfeiture: 09 (1) material and equipment used in the manufacture, sale, offering for 10 sale, or possession for sale of cigarettes in this state in violation of AS 43.50.500 - 11 43.50.640 or 43.50.660 - 43.50.700; 12 (2) aircraft, vehicles, or vessels used to transport or facilitate the 13 transportation of cigarettes manufactured, sold, offered for sale, or possessed for sale 14 in this state in violation of AS 43.50.500 - 43.50.640 or 43.50.660 - 43.50.700; 15 (3) money, securities, negotiable instruments, or other things of value 16 used in financial transactions derived from activity prohibited under AS 43.50.500 - 17 43.50.640 or 43.50.660 - 43.50.700. 18 (b) Property subject to forfeiture under this section may be actually or 19 constructively seized under an order issued by the superior court upon a showing of 20 probable cause that the property is subject to forfeiture under this section. 21 Constructive seizure is effected upon posting a signed notice of seizure on the item to 22 be forfeited, stating the violation and the date and place of seizure. Seizure without a 23 court order may be made if 24 (1) the seizure is incident to a valid arrest or search; 25 (2) the property subject to seizure is the subject of a prior judgment in 26 favor of the state; or 27 (3) there is probable cause to believe that the property is subject to 28 forfeiture under (a) of this section; property seized under this paragraph may be held 29 for not more than 48 hours unless an order of forfeiture is issued by the court before 30 the end of that time period. 31 (c) Within 30 days after a seizure under this section, the Department of Public
01 Safety shall make reasonable efforts to ascertain the identity and whereabouts of any 02 person holding an interest, or an assignee of a person holding an interest, in the 03 property seized, including a right to possession, or a lien, mortgage, or conditional 04 sales contract. The Department of Public Safety shall notify the person ascertained to 05 have an interest in the seized property of the impending forfeiture, and, before 06 forfeiture, the Department of Public Safety shall publish, once a week for four 07 consecutive calendar weeks, a notice of the impending forfeiture in a newspaper of 08 general circulation in the judicial district in which the seizure was made, or if a 09 newspaper is not published in that judicial district, in a newspaper published in the 10 state and distributed in that judicial district. 11 (d) Property subject to forfeiture under (a) of this section may be forfeited 12 (1) upon conviction of a person for a violation of AS 43.50.640; or 13 (2) upon judgment by the superior court in a proceeding in rem that the 14 property was used in a manner subjecting it to forfeiture under (a) of this section. 15 (e) The owner of property subject to forfeiture under (a) of this section is 16 entitled to relief from the forfeiture in the nature of remission of the forfeiture if, in an 17 action under (d) of this section, the owner shows that the owner 18 (1) was not a party to the violation; 19 (2) did not have actual knowledge or reasonable cause to believe that 20 the property was used or was to be used in violation of the law; and 21 (3) did not have actual knowledge or reasonable cause to believe that 22 the person committing the violation had, within the last 10 years, 23 (A) been convicted of violating this chapter; or 24 (B) committed other violations of this chapter. 25 (f) The court may allow the owner of property that is subject to forfeiture 26 under (a) of this section to redeem the property by paying an amount determined by 27 the court to be the fair market value of the property. 28 (g) A person other than the owner holding, or the assignee of, a lien, 29 mortgage, or conditional sales contract on, or the right to possession of property 30 subject to forfeiture under (a) of this section is entitled to relief from the forfeiture in 31 the nature of remission of the forfeiture if, in an action under (d) of this section, the
01 person shows that the person 02 (1) was not a party to the violation subjecting the property to 03 forfeiture; 04 (2) did not have actual knowledge or reasonable cause to believe that 05 the property was used or was to be used in violation of the law; and 06 (3) did not have actual knowledge or reasonable cause to believe that 07 the person committing the violation had, within the last 10 years, 08 (A) been convicted of violating this chapter; or 09 (B) committed other violations of this chapter. 10 (h) It is not a defense in an in rem forfeiture proceeding brought under (d)(2) 11 of this section that a criminal proceeding is pending or has resulted in conviction or 12 acquittal of a person charged with violating AS 43.50.640. 13 (i) Property forfeited under this section shall be placed in the custody of the 14 commissioner of public safety for disposition according to an order entered by the 15 court. The court shall order destroyed any property forfeited under this section that is 16 harmful to the public and may order any property forfeited under this section that was 17 seized in a municipality to be transferred to the municipality in which the property was 18 seized or to another municipality affected by the crime for which the property was 19 forfeited. The Department of Public Safety shall notify all municipalities affected by 20 the crime of the forfeiture proceeding. Other property shall be ordered sold and the 21 proceeds used for payment of expenses of the proceedings for forfeiture and sale, 22 including expenses of seizure, custody, and court costs. The remainder of the 23 proceeds shall be deposited in the general fund. 24 (j) The title to a vehicle or vessel forfeited to the state under this section may 25 be transferred by the state to a municipality or the local governing body of a village 26 for official use by the municipality or village, on condition that the vehicle or vessel 27 not be available for use by the defendant. 28 * Sec. 31. AS 43.50.640(a) is amended to read: 29 (a) A person commits the crime of misconduct involving unstamped cigarettes 30 or stamps in the first degree if the person 31 (1) with reckless disregard that the cigarettes are unstamped
01 (A) sells or distributes 5,000 [1,000] or more unstamped 02 cigarettes in a single transaction; 03 (B) owns or possesses 5,000 [1,000] or more unstamped 04 cigarettes with the intent to sell; or 05 (C) acquires, holds, transports, imports, or possesses 10,000 or 06 more unstamped cigarettes; or 07 (2) with reckless disregard that the stamp was previously affixed to 08 another cigarette package [;] 09 (A) affixes a previously used stamp to a cigarette package; or 10 (B) possesses, sells, or distributes a previously used stamp. 11 * Sec. 32. AS 43.50.650(a) is amended to read: 12 (a) A person commits the crime of misconduct involving unstamped cigarettes 13 or stamps in the second degree if the person 14 (1) with reckless disregard that the cigarettes are unstamped 15 (A) sells or distributes at least one but fewer than 5,000 [1,000] 16 unstamped cigarettes in a single transaction; 17 (B) owns or possesses at least one but fewer than 5,000 [1,000] 18 unstamped cigarettes, with intent to sell; [OR] 19 (C) acquires, holds, transports, imports, or possesses at least 20 401 [ONE] but fewer than 10,000 unstamped cigarettes; or 21 (D) acquires, holds, transports, imports, or possesses at 22 least one but fewer than 401 unstamped cigarettes that are not for 23 personal consumption; or 24 (2) is not licensed under this chapter or otherwise authorized by the 25 department to possess stamps and possesses a stamp that is not affixed to a cigarette 26 package. 27 * Sec. 33. AS 43.50.710 is amended by adding a new subsection to read: 28 (e) Nothing in this section prohibits a manufacturer from offering promotions 29 to a wholesaler or a retailer provided the wholesale promotion is the same for all 30 participating wholesalers and the retail promotion is the same for all participating 31 retailers.
01 * Sec. 34. AS 43.50.720 is amended to read: 02 Sec. 43.50.720. Sale at less than cost; with gift or concession. In all 03 advertisements, offers for sale, or sales involving two or more items when at least one 04 of the items is cigarettes at a combined price, and in all advertisements, offers for sale, 05 or sales involving the giving of any gift, concession, or coupon of any kind in 06 conjunction with the sale of cigarettes, the wholesaler's or retailer's combined selling 07 price may not be below the actual cost to the wholesaler or the actual cost to the 08 retailer, respectively, of the total of all articles, products, commodities, gifts, and 09 concessions included in the transactions, except that, if any articles, products, 10 commodities, gifts, or concessions are not cigarettes, the actual [BASIC] cost shall be 11 determined as provided under AS 43.50.800. 12 * Sec. 35. AS 43.50.760(b) is amended to read: 13 (b) The presumptive actual [WHOLESALE AND PRESUMPTIVE RETAIL] 14 cost of cigarettes as determined by the department under AS 43.50.800 [FROM THE 15 MANUFACTURER'S PRICE LIST] is considered competent evidence in a court 16 action or proceeding as tending to prove actual cost to the wholesaler or retailer 17 complained against. A party against whom the presumptive actual [WHOLESALE 18 OR PRESUMPTIVE RETAIL] cost as determined by the department is introduced in 19 evidence has the right to offer evidence tending to prove any inaccuracy of the 20 presumptive actual [WHOLESALE OR PRESUMPTIVE RETAIL] cost or any 21 statement of facts that would impair its probative value. 22 * Sec. 36. AS 43.50.770 is amended to read: 23 Sec. 43.50.770. Determination of cost of cigarettes purchased outside of 24 ordinary channels of trade. In establishing the actual [BASIC] cost of cigarettes to 25 a wholesaler or retailer, the invoice cost [OR THE ACTUAL COST] of cigarettes 26 purchased at a forced, bankrupt, or closeout sale, or other sale outside the ordinary 27 channels of trade may not be used. 28 * Sec. 37. AS 43.50.790(a) is amended to read: 29 (a) The department 30 (1) shall administer AS 43.50.710 - 43.50.849; 31 (2) may adopt regulations relating to the administration and
01 enforcement of AS 43.50.710 - 43.50.849; 02 (3) may determine the actual [BASIC] cost of cigarettes to a 03 wholesaler or retailer as provided in AS 43.50.800 [FROM INFORMATION 04 OBTAINED FROM A MANUFACTURER]; 05 (4) may, after reasonable notice and hearing, revoke or suspend a 06 license issued under AS 43.50.010 or 43.50.035 to a person who refuses or neglects to 07 comply with a provision of AS 43.50.710 - 43.50.849. 08 * Sec. 38. AS 43.50.800 is repealed and reenacted to read: 09 Sec. 43.50.800. Presumptions applicable to determination of cost. (a) The 10 presumptive actual cost of cigarettes to a wholesaler is, for purposes of AS 43.50.710 - 11 43.50.849, the presumptive wholesale cost as calculated by the department plus an 12 amount equal to four and one-half percent of the presumptive wholesale cost to 13 account for business costs. 14 (b) The presumptive actual cost of cigarettes to a retailer is, for purposes of 15 AS 43.50.710 - 43.50.849, the presumptive actual cost of cigarettes to the wholesaler 16 as calculated by the department under (a) of this section, plus an amount equal to six 17 percent of the presumptive actual cost of cigarettes to the wholesaler to account for 18 business costs. 19 (c) A wholesaler or retailer that wishes to advertise, offer to sell, or sell 20 cigarettes at less than the presumptive actual cost to the wholesaler or retailer as 21 calculated under (a) or (b) of this section must first obtain approval from the 22 department. The department may grant approval only if the wholesaler or retailer 23 provides proof satisfactory to the department that the wholesaler or retailer's actual 24 cost is lower than presumed. Approval for cigarette sales at less than the presumptive 25 actual cost as determined under (a) or (b) of this section may not be granted for a 26 period longer than one year. In reviewing proof of actual wholesale or retail cost, the 27 department may consider the costs reflected on the actual invoice, but may not 28 consider cash discounts. In reviewing proof of actual costs, the department may 29 consider the standards and methods of accounting regularly employed, and must 30 include labor costs, rent, depreciation, selling costs, maintenance of equipment, 31 delivery costs, all types of licenses, taxes, insurance, advertising, preopening
01 expenses, provision for impaired assets and closing costs, interest expenses, and 02 provision for merger and restructuring expenses. The department shall adopt 03 regulations to determine the wholesaler's and retailer's actual costs for purposes of 04 AS 43.50.710 - 43.50.849. 05 (d) For purposes of this section, the presumptive wholesale cost is the 06 manufacturer's list price, less trade discounts, plus the full face value of all cigarette 07 taxes. 08 * Sec. 39. AS 43.50.740(b), 43.50.849(1), 43.50.849(6), and 43.50.849(7) are repealed. 09 * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION: FLOOR STOCK TAX FOR CERTAIN CIGARETTES IN THE 12 STATE ON THE EFFECTIVE DATE OF SECS. 2 - 39 OF THIS ACT. (a) Notwithstanding 13 any other provision to the contrary, a floor stock tax is imposed at 12:01 a.m. on the effective 14 date of secs. 2 - 39 of this Act upon every person in control or possession of cigarettes for sale 15 or distribution in the state that were taxed at the rate in effect before the effective date of secs. 16 2 - 39 of this Act. The floor stock tax is the difference between the tax computed on each 17 cigarette as provided in AS 43.50.190(a), as amended by sec. 14 of this Act, on the effective 18 date of secs. 2 - 39 of this Act and the tax actually paid on each cigarette as required by 19 AS 43.50.190(a) as it read on the day before the effective date of secs. 2 - 39 of this Act. The 20 person subject to the floor stock tax under this section must provide proof that the tax required 21 by AS 43.50.190(a), as it read on the day before the effective date of secs. 2 - 39 of this Act, 22 on each cigarette was previously paid or the tax actually paid on each cigarette is considered 23 to be zero. 24 (b) A person subject to the floor stock tax under this section shall file a report not 25 later than the last day of the month in which secs. 2 - 39 of this Act take effect on a form 26 prescribed by the Department of Revenue and pay the tax to the Department of Revenue in six 27 sequential monthly installments. The first installment shall be paid not later than the last day 28 of the month in which secs. 2 - 39 of this Act take effect. The penalty, interest, and taxpayer 29 remedy provisions of AS 43.05 apply to the floor stock tax under this section. 30 * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 TRANSITION: REGULATIONS. The Department of Revenue may proceed to adopt 02 regulations necessary to implement the changes made by secs. 2 - 40 of this Act. The 03 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 04 effective date of secs. 2 - 40 of this Act. 05 * Sec. 42. Section 41 of this Act takes effect immediately under AS 01.10.070(c). 06 * Sec. 43. Except as provided in sec. 42 of this Act, this Act takes effect September 1, 07 2004.