00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 299(FIN)                                                                 
01 "An Act reducing excise tax rates for pipe tobacco and cigars; and relating to                                          
02 the definition of 'cigarettes' and 'tobacco products' for the purpose of taxation."                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 43.50.170(2) is amended to read:                                                                  
05   (2)  "cigarette" means                                                                                               
06    (A)   a roll for smoking of any size or shape, made wholly or                                                    
07 partly of tobacco, whether the tobacco is flavored, adulterated, or mixed with                                          
08 another ingredient, if the wrapper or cover of the roll is made of paper or a                                           
09 material other than tobacco;  or                                                                                       
10   (B)  a roll of tobacco wrapped in any substance containing                                                          
11 tobacco which, because of its appearance, the type of tobacco used in the                                               
12 filler, or its packaging and labeling, is likely to be offered to or purchased                                          
13 by consumers as a cigarette described in (A) of this paragraph;                                                        
14    * Sec. 2.  AS 43.50.300 is amended to read:                                                                        
01  Sec. 43.50.300.  Excise tax levied.   (a)   An excise tax is levied                                                 
02    (1)   on  the following  tobacco products in the state at the rate of  25  [75]                               
03 percent of the wholesale price of the tobacco  product:                                                                
04   (A)  hand-rolled cigars; and                                                                                        
05   (B)  tobacco in any form suitable for smoking in a pipe;                                                            
06   (2)  on a tobacco product, except a product described in (1) of this                                                 
07 subsection, in the state at the rate of 75 percent of the wholesale price of the                                        
08 tobacco product  [PRODUCTS].                                                                                           
09   (b)   The tax  imposed under (a) of this section  is levied when a person                                        
10   (1)  brings, or causes to be brought, a tobacco product into the state                                               
11 from outside the state for sale;                                                                                        
12   (2)  makes, manufactures, or fabricates a tobacco product in the state                                               
13 for sale in the state; or                                                                                               
14   (3)  ships or transports a tobacco product to a retailer in the state for                                            
15 sale by the retailer.                                                                                                   
16    * Sec. 3.  AS 43.50.390(4) is amended to read:                                                                     
17   (4)  "tobacco product" means                                                                                         
18   (A)  a cigar;                                                                                                       
19   (B)  [A CHEROOT;                                                                                                    
20   (C)  A STOGIE;                                                                                                      
21   (D)  A PERIQUE;                                                                                                     
22   (E)]  snuff and snuff flour;                                                                                        
23    (C)   [(F)]  smoking tobacco, including granulated, plug-cut,                                                    
24 crimp-cut, ready-rubbed, and any form of tobacco suitable for smoking in a                                              
25 pipe or cigarette;                                                                                                      
26    (D)   [(G)]  chewing tobacco, including cavendish, twist, plug,                                                  
27 scrap, and tobacco suitable for chewing; or                                                                             
28    (E)   [(H)]  an article or product made of tobacco or a tobacco                                                  
29 substitute, but not including a cigarette as defined in AS 43.50.170;                                                   
30    * Sec. 4.  AS 43.50.390 is amended by adding a new paragraph to read:                                              
31   (6)  "cigar" means a roll of tobacco wrapped in leaf tobacco or a                                                    
01 substance containing tobacco, including a cheroot, a stogie, or a perique, but does not                                 
02 include a cigarette as defined in AS 43.50.170.