00HOUSE BILL NO. 442                                                                                                      
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 43.50.190(a) is amended to read:                                                                    
05  (a)  On [THERE IS LEVIED AN EXCISE TAX OF 12 MILLS ON] each                                                         
06 cigarette imported or acquired in this state, there is levied an excise tax at the                                     
07 following rates:                                                                                                        
08   (1)  on and after the effective date of this Act and through June 30,                                                
09 1999 - 62 mills;                                                                                                        
10   (2)  after June 30, 1999, and through June 30, 2002 - 74 mills;                                                      
11   (3)  after June 30, 2002, and through June 30, 2005 - 86 mills; and                                                  
12   (4)  after June 30, 2005 - 86 mills plus an additional 12 mills during                                               
13 each succeeding three-year period, the increase to be effective on the first day of                                     
14 the succeeding three-year period.                                                                                      

01    * Sec. 2.  AS 43.50.190 is amended by adding a new subsection to read:                                               
02  (c)  At the time of a change in the amount of tax under (a) of this section, the                                      
03 department shall give public notice of the change.  The department shall also provide                                   
04 notification of the change to all persons licensed under this chapter.                                                  
05    * Sec. 3.  AS 43.50.300 is amended to read:                                                                          
06  Sec. 43.50.300.  EXCISE TAX LEVIED.  An excise tax is levied on tobacco                                               
07 products in the state at the rate of 100 [25] percent of the wholesale price of the                                   
08 tobacco products.  The tax is levied when a person                                                                      
09   (1)  brings, or causes to be brought, a tobacco product into the state                                               
10 from outside the state for sale;                                                                                        
11   (2)  makes, manufactures, or fabricates a tobacco product in the state                                               
12 for sale in the state; or                                                                                               
13   (3)  ships or transports a tobacco product to a retailer in the state for                                            
14 sale by the retailer.                                                                                                   
15    * Sec. 4.  This Act takes effect October 1, 1996.