CSSSHB 299(FIN): "An Act reducing excise tax rates for pipe tobacco and cigars; and relating to the definition of 'cigarettes' and 'tobacco products' for the purpose of taxation."
00CS 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  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.