HB 52: "An Act relating to taxes on cigarettes and tobacco products; and providing for an effective date."
00HOUSE BILL NO. 52 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 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 is amended by adding a new section to read: 23 Sec. 43.50.365. Tax adjustment. (a) The amount in AS 43.50.300 changes, 24 as provided in this section, according to and to the extent of changes in the Consumer 25 Price Index for all urban consumers for the Anchorage Metropolitan Area compiled by 26 the Bureau of Labor Statistics, United States Department of Labor. The index for 27 January of 1998 is the reference base index. 28 (b) The amounts change 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 AS 43.50.300. However, the amounts do not change if the amounts
01 required by this section are those currently in effect as a result of earlier application 02 of this section. 03 (c) 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 United States Bureau of Labor 07 Statistics. If the index is superseded, the index referred to in this section is the one 08 represented by the Bureau of Labor Statistics as reflecting most accurately changes in 09 the purchasing power of the dollar for Alaska consumers. 10 * Sec. 8. AS 43.50 is amended by adding a new section to read: 11 Sec. 43.50.380. Notice. At the time of a change in the amount of the tax 12 under AS 43.50.365, the department shall promptly give public notice of the change. 13 The department shall also provide notification of a change to all persons licensed under 14 this chapter. 15 * Sec. 9. AS 43.50.090(d), added by sec. 2 of this Act, is repealed. 16 * Sec. 10. CONDITIONAL EFFECT OF CERTAIN SECTIONS. Sections 2, 4, 5, and 9 17 of this Act take effect only if 18 (1) a court enters a final judgment that the amendment made to 19 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the 20 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 21 the proceeds of a state tax or license; and 22 (2) either the time for appeal of that judgment expires or, if an appeal is taken, 23 the court enters a final order on appeal that AS 43.50.090(a), as amended by sec. 1 of this 24 Act, violates art. IX, sec. 7, Constitution of the State of Alaska. 25 * Sec. 11. Sections 1, 3, and 6 - 8 of this Act take effect October 1, 1997. 26 * Sec. 12. If secs. 2, 4, 5, and 9 of this Act take effect under sec. 10 of this Act, they take 27 effect on the later of (1) the date a court enters a final judgment that the amendment made to 28 AS 43.50.090(a) by sec. 1 of this Act changing the rate of taxation on cigarettes violates the 29 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 30 the proceeds of a state tax or license, and (2) the expiration of any time for appeal of that 31 judgment, or, if an appeal is taken, upon entry of a final order on the appeal that
01 AS 43.50.090(a), as amended by sec. 1 of this Act, violates art. IX, sec. 7, Constitution of the 02 State of Alaska. The attorney general shall promptly notify the lieutenant governor and the 03 revisor of statutes of a judgment described in this section.