2016-02-08                     House Journal                      Page 1598
     account; relating to the mental health trust fund; relating to                                                             
     deposits into the dividend fund; and providing for an effective                                                            
     date."                                                                                                                     
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
HB 304                                                                                                                        
HOUSE BILL NO. 304 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "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                                                                 
     products; adding a definition of 'electronic smoking product'; and                                                         
     providing for an effective date."                                                                                          
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated February 5, 2016, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the taxes on cigarettes                                                      
and tobacco products; and taxing electronic smoking devices.                                                                    
                                                                                                                                
Smoking technology has advanced beyond single use paper-rolled                                                                  
cigarettes to include multiple use electronic smoking devices.                                                                  
Therefore, our tobacco tax statutes (AS 43.50 Cigarette Tax Act)                                                                
should be revised to include this new smoking device as taxable.                                                                
                                                                                                                                
To further update our outdated tobacco tax structure, I propose to                                                              
amend the additional tax levy on cigarettes - which has not been                                                                
raised since 2007 - from 62 mills to 112 mills. I also propose                                                                  
increasing the tax rate on tobacco products (other than cigarettes) from