00 CS FOR HOUSE BILL NO. 1(STA)
01 "An Act relating to taxes on cigarettes and tobacco products; and providing for
02 an effective date."
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
04 * Section 1. AS 43.50.090(a) is amended to read:
05 (a) There is levied an excise tax [OF TWO AND ONE-HALF MILLS] on each
06 cigarette imported or acquired in the state. Each licensee shall, at the time of filing
07 the return required by AS 43.50.080, pay to the department the excise for the calendar
08 month covered by the return, deducting one percent of the total tax due, which the
09 licensee shall retain to cover the expense of accounting and filing returns. Cigarettes
10 upon which the excise is imposed are not again subject to the excise when acquired
11 by another person. The excise tax is levied at the following rates:
12 (1) on and after the effective date of this bill section and through
13 June 30, 2000 - 52 1/2 mills;
14 (2) after June 30, 2000, and through June 30, 2003 - 64 1/2 mills;
01 (3) after June 30, 2003, and through June 30, 2006 - 76 1/2 mills;
02 and
03 (4) after June 30, 2006 - 76 1/2 mills plus an additional 12 mills
04 during each succeeding three-year period, the increase to be effective on the first
05 day of the succeeding three-year period .
06 * Sec. 2. AS 43.50.090(a) is amended to read:
07 (a) There is levied an excise tax of two and one-half mills on each cigarette
08 imported or acquired in the state. Each licensee shall, at the time of filing the return
09 required by AS 43.50.080, pay to the department the excise for the calendar month
10 covered by the return, deducting one percent of the total tax due, which the licensee
11 shall retain to cover the expense of accounting and filing returns. Cigarettes upon
12 which the excise is imposed are not again subject to the excise when acquired by
13 another person. [THE EXCISE TAX IS LEVIED AT THE FOLLOWING RATES:
14 (1) ON AND AFTER THE EFFECTIVE DATE OF THIS BILL
15 SECTION AND THROUGH JUNE 30, 2000 - 52 1/2 MILLS;
16 (2) AFTER JUNE 30, 2000, AND THROUGH JUNE 30, 2003 - 64 1/2
17 MILLS;
18 (3) AFTER JUNE 30, 2003, AND THROUGH JUNE 30, 2006 - 76 1/2
19 MILLS; AND
20 (4) AFTER JUNE 30, 2006 - 76 1/2 MILLS PLUS AN ADDITIONAL
21 12 MILLS DURING EACH SUCCEEDING THREE-YEAR PERIOD, THE
22 INCREASE TO BE EFFECTIVE ON THE FIRST DAY OF THE SUCCEEDING
23 THREE-YEAR PERIOD.]
24 * Sec. 3. AS 43.50.090 is amended by adding a new subsection to read:
25 (d) At the time of a change in the amount of tax under (a) of this section, the
26 department shall give public notice of the change. The department shall also provide
27 notification of the change to all persons licensed under this chapter.
28 * Sec. 4. AS 43.50.190(a) is amended to read:
29 (a) On [THERE IS LEVIED AN EXCISE TAX OF 12 MILLS ON] each
30 cigarette imported or acquired in this state , there is levied an excise tax at the
31 following rates:
01 (1) on and after the effective date of this bill section and through
02 June 30, 2000 - 62 mills;
03 (2) after June 30, 2000, and through June 30, 2003 - 74 mills;
04 (3) after June 30, 2003, and through June 30, 2006 - 86 mills; and
05 (4) after June 30, 2006 - 86 mills plus an additional 12 mills during
06 each succeeding three-year period, the increase to be effective on the first day of
07 the succeeding three-year period .
08 * Sec. 5. AS 43.50.190 is amended by adding a new subsection to read:
09 (c) At the time of a change in the amount of tax under (a) of this section, the
10 department shall give public notice of the change. The department shall also provide
11 notification of the change to all persons licensed under this chapter.
12 * Sec. 6. AS 43.50.300 is amended to read:
13 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products
14 in the state at the rate of 100 [25] percent of the wholesale price of the tobacco
15 products. The tax is levied when a person
16 (1) brings, or causes to be brought, a tobacco product into the state
17 from outside the state for sale;
18 (2) makes, manufactures, or fabricates a tobacco product in the state
19 for sale in the state; or
20 (3) ships or transports a tobacco product to a retailer in the state for
21 sale by the retailer.
22 * Sec. 7. AS 43.50.300 is amended by adding new subsections to read:
23 (b) The amount in (a) of this section changes, as provided in (b) - (d) of this
24 section, according to and to the extent of changes in the Consumer Price Index for all
25 urban consumers for the Anchorage Metropolitan Area compiled by the Bureau of
26 Labor Statistics, United States Department of Labor. The index for January of 1998
27 is the reference base index.
28 (c) The amount changes on July 1 of each even-numbered year in an amount
29 equal to the percentage of change, calculated to the nearest whole percentage point,
30 between the index for January of that year and the most recent index used to change
31 the amount in (a) of this section. However, the amount does not change if the amount
01 required by (b) - (d) of this section is that currently in effect as a result of earlier
02 application of (b) - (d) of this section.
03 (d) If the index is revised, the percentage of change is calculated on the basis
04 of the revised index. If a revision of the index changes the reference base index, a
05 revised reference base index is determined by multiplying the reference base index
06 applicable by the rebasing factor furnished by the Bureau of Labor Statistics, United
07 States Department of Labor. If the index is superseded, the index referred to in (b) -
08 (d) of this section is the one represented by the Bureau of Labor Statistics as reflecting
09 most accurately changes in the purchasing power of the dollar for Alaska consumers.
10 (e) At the time of a change in the amount of the tax under this section, the
11 department shall promptly give public notice of the change. The department shall also
12 provide notification of a change to all persons licensed under this chapter.
13 * Sec. 8. AS 43.50.090(d), added by sec. 3 of this Act, is repealed.
14 * Sec. 9. CONDITIONAL EFFECT OF CERTAIN SECTIONS. Sections 2, 4, 5, and 8
15 of this Act take effect only if
16 (1) a court enters a final judgment that the amendment made to
17 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the
18 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of
19 the proceeds of a state tax or license; and
20 (2) either the time for appeal of that judgment expires or, if an appeal is taken,
21 the court enters a final order on appeal that AS 43.50.090(a), as amended by sec. 1 of this
22 Act, violates art. IX, sec. 7, Constitution of the State of Alaska.
23 * Sec. 10. Sections 1, 3, 6, and 7 of this Act take effect October 1, 1997.
24 * Sec. 11. If secs. 2, 4, 5, and 8 of this Act take effect under sec. 9 of this Act, they take
25 effect on the later of (1) the date a court enters a final judgment that the amendment made to
26 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the
27 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of
28 the proceeds of a state tax or license, and (2) the expiration of any time for appeal of that
29 judgment, or, if an appeal is taken, upon entry of a final order on the appeal that
30 AS 43.50.090(a), as amended by sec. 1 of this Act, violates art. IX, sec. 7, Constitution of the
31 State of Alaska. The attorney general shall promptly notify the lieutenant governor and the
01 revisor of statutes of a judgment described in this section.