2002-02-19                     Senate Journal                      Page 2230
Although these results from other states are encouraging, we do not                                 
have a reliable basis to predict the size of the effect of cigarette tax                            
stamps here in Alaska. Given that cigarette tax revenue is about $40                                
million per year, each one percent increase in tax collected would raise                            
about $400,000 per year.                                                                            
                                                                                                    
Stamps do not come free and distributors will incur costs when                                      
affixing stamps to individual packs of cigarettes. In recognition of the                            
cost, the bill provides a tax discount for distributors of two percent for                          
the first one million stamps and one percent for all additional stamps.                             
                                                                                                    
I urge your support of this important bill. It will enhance compliance                              
with the state's revenue laws while providing an important public                                   
health benefit.                                                                                     
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
SB 299                                                                                            
SENATE BILL NO. 299 BY THE SENATE LABOR AND                                                         
COMMERCE COMMITTEE, entitled:                                                                       
                                                                                                    
          "An Act relating to the establishment of an additional                                    
          southcentral panel to the Alaska Workers'                                                 
          Compensation Board and to appointments to that                                            
          panel; and providing for an effective date."                                              
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
SB 300                                                                                            
SENATE BILL NO. 300 BY SENATOR LINCOLN, entitled:                                                   
                                                                                                    
               "An Act relating to Native handicrafts and other                                    
          articles made in the state."                                                              
                                                                                                    
was read the first time and referred to the Labor and Commerce                                      
Committee.