HCS CSSB 13(HES): "An Act relating to taxes on cigarettes and tobacco products and to the use of the proceeds of those taxes, and increasing by at least 35.5 mills the amount of excise tax levied on each cigarette imported or acquired in the state; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 13(HES) 01 "An Act relating to taxes on cigarettes and tobacco products and to the use of 02 the proceeds of those taxes, and increasing by at least 35.5 mills the amount of 03 excise tax levied on each cigarette imported or acquired in the state; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. LEGISLATIVE INTENT. It is the intent of the legislature that, of the tax 07 revenue derived 08 (1) from the amendment to the cigarette tax made by sec. 2 of this Act, the 09 amount obtained be deposited into the school fund (AS 43.50.140) and used as required by 10 that section for state support of elementary and secondary education; and 11 (2) from the amendment contingently made to the cigarette tax by sec. 4 of this 12 Act, subject to appropriation, the amount obtained be expended for state support of elementary 13 and secondary education. 14 * Sec. 2. AS 43.50.090(a) is amended to read:
01 (a) There is levied an excise tax of 38 [TWO AND ONE-HALF] mills on each 02 cigarette imported or acquired in the state. Each licensee shall, at the time of filing 03 the return required by AS 43.50.080, pay to the department the excise for the calendar 04 month covered by the return, deducting four-tenths of one percent of the total tax due, 05 which the licensee shall retain to cover the expense of accounting and filing returns. 06 Cigarettes upon which the excise is imposed are not again subject to the excise when 07 acquired by another person. 08 * Sec. 3. AS 43.50.090(a) is amended to read: 09 (a) There is levied an excise tax of two and one-half [38] mills on each 10 cigarette imported or acquired in the state. Each licensee shall, at the time of filing 11 the return required by AS 43.50.080, pay to the department the excise for the calendar 12 month covered by the return, deducting four-tenths of one percent of the total tax due, 13 which the licensee shall retain to cover the expense of accounting and filing returns. 14 Cigarettes upon which the excise is imposed are not again subject to the excise when 15 acquired by another person. 16 * Sec. 4. AS 43.50.190(a) is amended to read: 17 (a) There is levied an excise tax of 47.5 [12] mills on each cigarette imported 18 or acquired in this state. 19 * Sec. 5. AS 43.50.300 is amended to read: 20 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 21 in the state at the rate of 75 [25] percent of the wholesale price of the tobacco 22 products. The tax is levied when a person 23 (1) brings, or causes to be brought, a tobacco product into the state 24 from outside the state for sale; 25 (2) makes, manufactures, or fabricates a tobacco product in the state 26 for sale in the state; or 27 (3) ships or transports a tobacco product to a retailer in the state for 28 sale by the retailer. 29 * Sec. 6. AS 43.50.330(b) is amended to read: 30 (b) The licensee shall remit with the return the tax due under AS 43.50.300 31 for the month covered by the return, after deducting four-tenths of one percent of the
01 tax due, which the licensee shall retain to cover the expense of accounting and filing 02 the return. 03 * Sec. 7. CONDITIONAL EFFECT OF CERTAIN SECTIONS. Sections 3 and 4 of this 04 Act take effect only if 05 (1) a court enters a final judgment that the amendment made to 06 AS 43.50.090(a) by sec. 2 of this Act changing the rate of taxation on cigarettes violates the 07 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 08 the proceeds of a state tax or license; and 09 (2) either the time for appeal of that judgment expires or, if an appeal is taken, 10 the court enters a final order on appeal that AS 43.50.090(a), as amended by sec. 2 of this 11 Act, violates art. IX, sec. 7, Constitution of the State of Alaska. 12 * Sec. 8. RETROACTIVITY. If secs. 3 and 4 of this Act take effect under sec. 7 of this 13 Act, then the amendments to AS 43.50.090(a) and 43.50.190(a) made by secs. 3 and 4 of this 14 Act are retroactive to the effective date of this section and 35.5 mills per cigarette of the tax 15 levied under AS 43.50.090(a), as amended by sec. 2 of this Act, for cigarettes sold on or after 16 the effective date of this section shall be credited to the tax levied under AS 43.50.190(a), as 17 amended by sec. 4 of this Act. 18 * Sec. 9. Sections 1, 2, 5, 6, and 8 of this Act take effect October 1, 1997. 19 * Sec. 10. If secs. 3 and 4 of this Act take effect under sec. 7 of this Act, they take effect 20 on the later of (1) the date a court enters a final judgment that the amendment made to 21 AS 43.50.090(a) by sec. 2 of this Act changing the rate of taxation on cigarettes violates the 22 prohibition set out in art. IX, sec. 7, Constitution of the State of Alaska, against dedication of 23 the proceeds of a state tax or license, and (2) the expiration of any time for appeal of that 24 judgment, or upon entry of a final order on the appeal that AS 43.50.090(a), as amended by 25 sec. 2 of this Act, violates art. IX, sec. 7, Constitution of the State of Alaska. The attorney 26 general shall promptly notify the lieutenant governor and the revisor of statutes of a judgment 27 described in this section.