00                            HOUSE BILL NO. 188                                                                          
01 "An Act relating to the taxation of moist snuff tobacco, and amending the definition of                                 
02 'tobacco product' in provisions levying an excise tax on those products."                                               
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 43.50.300 is amended to read:                                                                      
05            Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products                             
06       in the state at the rate in (b) of this section [RATE OF 75 PERCENT OF THE                                    
07       WHOLESALE PRICE OF THE TOBACCO PRODUCTS]. The tax is levied when a                                                
08       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.                                                                                             

01    * Sec. 2. AS 43.50.300 is amended by adding a new subsection to read:                                              
02            (b)  The excise tax rate on                                                                                  
03                 (1)  moist snuff tobacco is $1.88 multiplied by the number of ounces of                                 
04       moist snuff tobacco, including fractions of an ounce;                                                             
05                 (2)  tobacco products other than moist snuff tobacco is 75 percent of the                               
06       wholesale price of the tobacco product.                                                                           
07    * Sec. 3. AS 43.50.330(a) is amended to read:                                                                      
08            (a)  On or before the last day of each calendar month, a licensee shall file a                               
09       return with the department. The return must state the number or amount of tobacco                                 
10       products including the number of ounces of moist snuff tobacco sold by the                                    
11       licensee during the preceding calendar month, the selling price of the tobacco                                    
12       products, [AND] the amount of tax imposed on [THE] tobacco products other than                                
13       moist snuff tobacco, and the amount of tax imposed on moist snuff tobacco.                                    
14    * Sec. 4. AS 43.50.390(4) is amended to read:                                                                      
15                 (4)  "tobacco product" means                                                                            
16                      (A)  a cigar;                                                                                      
17                      (B)  a cheroot;                                                                                    
18                      (C)  a stogie;                                                                                     
19                      (D)  a perique;                                                                                    
20                      (E)  snuff tobacco, including moist snuff tobacco, and snuff                                   
21            flour;                                                                                                       
22                      (F)  smoking tobacco, including granulated, plug-cut, crimp-cut,                                   
23            ready-rubbed, and any form of tobacco suitable for smoking in a pipe or                                      
24            cigarette;                                                                                                   
25                      (G)  chewing tobacco, including cavendish, twist, plug, scrap,                                     
26            and tobacco suitable for chewing; or                                                                         
27                      (H)  an article or product made of tobacco or a tobacco                                            
28            substitute, but not including a cigarette as defined in AS 43.50.170;                                        
29    * Sec. 5. AS 43.50.390 is amended by adding a new paragraph to read:                                               
30                 (6)  "moist snuff tobacco" means any finely cut, ground, or powdered                                    
31       tobacco that is not intended to be                                                                                

01                      (A)  smoked; or                                                                                    
02                      (B)  placed in the nasal cavity.                                                                   
03    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
04 read:                                                                                                                   
05       APPLICABILITY. Sections 1 - 5 of this Act are applicable starting on the first day of                             
06 the month immediately following the effective date of this Act.