SB 133: "An Act requiring the electronic submission of a tax return or report with the Department of Revenue; relating to the taxes on cigarettes and tobacco products; taxing electronic smoking devices; and providing for an effective date."
00 SENATE BILL NO. 133 01 "An Act requiring the electronic submission of a tax return or report with the 02 Department of Revenue; relating to the taxes on cigarettes and tobacco products; taxing 03 electronic smoking devices; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.05.220 is amended to add a new subsection to read: 06 (f) A penalty of $25 or one percent of the total tax before any payment, 07 whichever is greater, shall be assessed against a taxpayer that fails to electronically 08 submit a return or report under AS 43.05.222, unless the taxpayer has received an 09 exemption under AS 43.05.222 or can show reasonable cause. 10 * Sec. 2. AS 43.05 is amended by adding a new section to read: 11 Sec. 43.05.222. Electronic submission of return or report. (a) A taxpayer 12 required to submit a return or report for a tax levied under AS 43 or any other tax 13 administered by the department shall submit the return or report electronically in a 14 format prescribed by the department. Unless the taxpayer has received an exemption
01 under (b) of this section or can show reasonable cause, a return or report not submitted 02 electronically is subject to a civil penalty under AS 43.05.220. 03 (b) A taxpayer may request an exemption from the requirement that a return or 04 report be submitted electronically. The taxpayer or taxpayer's representative shall 05 contact the department and request the exemption before the return or report is due 06 and shall submit evidence that the taxpayer does not have the capability to submit the 07 return or report electronically. An exemption granted under this subsection is valid for 08 two years after the first tax filing due date after the exemption is granted; after the two 09 year period, the taxpayer may apply for another exemption. 10 * Sec. 3. AS 43.50.150(c) is amended to read: 11 (c) The department may enter into an agreement with a municipality that 12 imposes a tax on cigarettes, electronic smoking devices, or other tobacco products for 13 the purpose of jointly auditing a person liable for a tax under AS 43.50.010 - 14 43.50.390 and the municipal tax on cigarettes, electronic smoking devices, or other 15 tobacco products. 16 * Sec. 4. AS 43.50.170 is amended by adding a new section to read: 17 (13) "electronic smoking device" has the meaning given in 18 AS 43.50.390. 19 * Sec. 5. AS 43.50.190(a) is amended to read: 20 (a) There is levied an excise tax on each cigarette imported or acquired in this 21 state of 112 [, 22 (1) AFTER DECEMBER 31, 2004, BUT BEFORE JULY 1, 2006, 42 23 MILLS; 24 (2) AFTER JUNE 30, 2006, BUT BEFORE JULY 1, 2007, 52 25 MILLS; 26 (3) AFTER JUNE 30, 2007, 62] mills. 27 * Sec. 6. AS 43.50.300 is amended to read: 28 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 29 and electronic smoking devices in the state at the rate of 100 [75] percent of the 30 wholesale price of the tobacco products or electronic smoking devices. The tax is 31 levied when a person who first
01 (1) brings, or causes to be brought, a tobacco product or electronic 02 smoking device into the state from outside the state for sale; or 03 (2) makes, manufactures, or fabricates a tobacco product or electronic 04 smoking device in the state for sale in the state [; OR 05 (3) SHIPS OR TRANSPORTS A TOBACCO PRODUCT TO A 06 RETAILER IN THE STATE FOR SALE BY THE RETAILER]. 07 * Sec. 7. AS 43.50.310(b) is amended to read: 08 (b) The tax does not apply to a tobacco product or electronic smoking device 09 if the United States Constitution or other federal laws prohibit the levying of the tax on 10 the product or device by the state. 11 * Sec. 8. AS 43.50.320(a) is amended to read: 12 (a) Except as provided in (g) of this section, a person must be licensed by the 13 department if the person engages in business as a distributor for a tobacco product or 14 electronic smoking device that is subject to the tax. 15 * Sec. 9. AS 43.50.330(a) is amended to read: 16 (a) On or before the last day of each calendar month, a licensee shall file a 17 return with the department. The return must be submitted electronically to the 18 department in a format prescribed by the department. The return must state the 19 number or amount of tobacco products or electronic smoking devices sold by the 20 licensee during the preceding calendar month, the selling price of the tobacco products 21 or electronic smoking devices, and the amount of tax imposed on the tobacco 22 products or electronic smoking devices. 23 * Sec. 10. AS 43.50.335 is amended to read: 24 Sec. AS 43.50.335. Tax credits and refunds. The department shall adopt 25 procedures for a refund or credit to a licensee of the tax paid for tobacco products or 26 electronic smoking devices that have become unfit for sale, are destroyed, or are 27 returned to the manufacturer for credit or replacement if the licensee provides proof 28 acceptable to the department that the tobacco products or electronic smoking devices 29 have not been and will not be consumed in this state. 30 * Sec. 11. AS 43.50.340 is amended to read: 31 Sec. 43.50.340. Records. A licensee shall keep a complete and accurate record
01 of all tobacco products or electronic smoking devices of the licensee subject to the 02 tax, including purchase prices, sales prices, the names and addresses of the sellers and 03 the purchasers, the dates of delivery, the quantities of tobacco products or electronic 04 smoking devices, and the trade names and brands. Statements and records required by 05 this section must be in the form prescribed by the department, preserved for three 06 years, and available for inspection upon demand by the department. 07 * Sec. 12. AS 43.50.390(4) is amended to read: 08 (4) "tobacco product" 09 (A) means 10 (i) [(A)] a cigar; 11 (ii) [(B)] a cheroot; 12 (iii) [(C)] a stogie; 13 (iv) [(D)] a perique; 14 (v) [(E)] snuff and snuff flour; 15 (vi) [(F)] smoking tobacco, including granulated, plug- 16 cut, crimp-cut, ready-rubbed, and any form of tobacco suitable for 17 smoking in a pipe or cigarette; 18 (vii) [(G)] chewing tobacco, including cavendish, twist, 19 plug, scrap, and tobacco suitable for chewing; or 20 (viii) [(H)] an article or product made of tobacco or a 21 tobacco substitute, but not including a cigarette as defined in 22 AS 43.50.170; 23 (B) does not include a product that has been approved by 24 the United States Food and Drug Administration for sale as a smoking 25 cessation product, tobacco dependence product, or modified risk tobacco 26 product; 27 * Sec. 13. AS 43.50.390(5) is amended to read: 28 (5) "wholesale price" means, for a tobacco product or electronic 29 smoking device 30 (A) acquired from a manufacturer, the gross invoice 31 [ESTABLISHED] price, including all federal excise taxes, at [FOR] which
01 the [A] manufacturer sells a tobacco product or electronic smoking device to 02 an unaffiliated [A] distributor after a deduction of a trade discount or other 03 reduction received by the distributor [FOR QUANTITY OR CASH IF THE 04 MANUFACTURER'S ESTABLISHED PRICE IS ADEQUATELY 05 SUPPORTED BY BONA FIDE ARM'S LENGTH SALES AS 06 DETERMINED BY THE DEPARTMENT]; or 07 (B) not acquired from a manufacturer, the gross invoice 08 price, including all federal excise taxes, after a deduction of a trade 09 discount or other reduction [AS DETERMINED BY THE DEPARTMENT, 10 FOR WHICH TOBACCO PRODUCTS OF COMPARABLE RETAIL PRICE 11 ARE SOLD TO DISTRIBUTORS IN THE ORDINARY COURSE OF 12 TRADE IF THE MANUFACTURER'S ESTABLISHED PRICE DOES NOT 13 MEET THE STANDARDS OF (A) OF THIS PARAGRAPH]. 14 * Sec. 14. AS 43.50.390 is amended by adding a new paragraph to read: 15 (6) "electronic smoking device" 16 (A) means 17 (i) an electronic cigarette, electronic cigar, electronic 18 cigarillo, electronic pipe, or other similar device that is used to 19 aerosolize and deliver nicotine or other substances to the person 20 inhaling from the device; and 21 (ii) a component, solution, vapor product, or other 22 related product of an electronic cigarette, electronic cigar, electronic 23 cigarillo, electronic pipe, or other similar device; 24 (B) does not include a 25 (i) battery or battery charger that is sold separately; 26 (ii) drug, device, or combination product approved for 27 sale by the United State Food and Drug Administration, as those terms 28 are defined in 21 U.S.C. 301-392 (Food, Drug, and Cosmetic Act); or 29 (iii) product that has been approved by the United 30 States Food and Drug Administration for sale as a smoking cessation 31 product, tobacco dependence product, or modified risk tobacco product.
01 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. (a) AS 43.50.190(a), as amended by sec. 5 of this Act, and 04 AS 43.50.300, as amended by sec. 6 of this Act, apply to tobacco products sold on or after the 05 effective date of this Act. 06 (b) AS 43.50.330, as amended by sec. 9 of this Act, applies to the first monthly return 07 submitted after the first full month after the effective date of this Act. 08 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITIONAL PROVISION: REGULATIONS. The Department of Revenue may 11 adopt regulations necessary to implement the changes made by this Act. The regulations take 12 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 13 law implemented by the regulation. 14 * Sec. 17. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 15 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect July 1, 2016.