00                            HOUSE BILL NO. 443                                                                          
01 "An Act relating to municipal taxation of tobacco products; and providing for an                                        
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.10.200 is amended by adding a new paragraph to read:                                           
05                 (64)  AS 29.45.820  (taxation of tobacco products).                                                     
06    * Sec. 2.  AS 29.45.650(a) is amended to read:                                                                     
07            (a)  Except as provided in AS 04.21.010(c), AS 29.45.750, 29.45.820, and in                              
08       (f), (h), (i), and (j) of this section, a borough may levy and collect a sales tax on sales,                      
09       rents, and on services provided in the borough.  The sales tax may apply to any or all                            
10       of these sources.  Notwithstanding other statutes, exemptions may be granted by                                   
11       ordinance.  A borough may wholly or partially exempt a source from a borough sales                                
12       tax that is taxed by a city in that borough under AS 29.45.700.                                                   
13    * Sec. 3.  AS 29.45 is amended by adding a new section to read:                                                    
14            Sec. 29.45.820.  Taxation of tobacco products.  (a)  A  municipality may not                               

01       impose taxes on tobacco products except a sales tax on or applicable to tobacco                                   
02       products sales that was in effect before July 1, 2005.  The amount of a sales tax on or                           
03       applicable to tobacco products may not exceed the amount in effect on June 30, 2005.                              
04       For purposes of this subsection, "tobacco products" has the meaning given in                                      
05       AS 43.50.390.                                                                                                     
06            (b)  This section applies to home rule and general law municipalities.                                       
07    * Sec. 4.  Section 4, ch. 100, SLA 2002, as amended by sec. 9, ch. 117, SLA 2003, and by                           
08 sec. 2, ch. 30, SLA 2005, is repealed and reenacted to read:                                                            
09            Sec. 4.  AS 29.45.650(a) is amended to read:                                                                 
10            (a)  Except as provided in AS 04.21.010(c), AS 29.45.820 [AS 29.45.750,                                  
11       29.45.820], and in (f), (h), (i), and (j) of this section, a borough may levy and collect a                       
12       sales tax on sales, rents, and on services provided in the borough.  The sales tax may                            
13       apply to any or all of these sources.  Notwithstanding other statutes, exemptions may                             
14       be granted by ordinance.  A borough may wholly or partially exempt a source from a                                
15       borough sales tax that is taxed by a city in that borough under AS 29.45.700.                                     
16    * Sec. 5.  This Act takes effect January 1, 2007.