Legislature(2015 - 2016)
2016-01-19 Senate Journal
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Full Journal pdf2016-01-19 Senate Journal Page 1599 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 To further update our outdated tobacco tax structure, I propose to amend the additional tax levy on cigarettes - which has not been raised since 2007 - from 62 mills to 112 mills.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 75 percent of the wholesale price to 100 percent of the wholesale price. These reasonable adjustments will bring our tax structure up to date and are expected to generate additional revenue of approximately $29,000,000 annually. To increase administrative efficiency for the Department of Revenue and state taxpayers, the bill would require the electronic submission of tax returns with an exemption available upon request. The bill is an integral component of the New Sustainable Alaska Plan to provide a balanced and sustainable budget for Alaska's long-term fiscal stability. I urge your prompt and favorable action on this measure. Sincerely, /s/ Bill Walker Governor SB 134 SENATE BILL NO. 134 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to the taxation of income of individuals; repealing tax credits applied against the tax on individuals under the Alaska Net Income Tax Act; and providing for an effective date." was read the first time and referred to the Labor and Commerce and Finance Committees.