Legislature(1997 - 1998)
1997-01-13 House Journal
Full Journal pdf1997-01-13 House Journal Page 0047 HB 61 HOUSE BILL NO. 61 by the House Rules Committee by request of the Governor, entitled: An Act relating to the disposition and use of the proceeds of excise taxes on cigarettes and tobacco products; increasing the rates on certain of those excise taxes; and providing for an effective date. was read the first time and referred to the State Affairs and Health, Education & Social Services Committees, the House Special Committee on World Trade and State/Federal Relations and the Finance Committee. The following fiscal note applies: Fiscal note, Dept. of Revenue, 1/13/97 The Governor's transmittal letter, dated January 13, 1997, appears below: Dear Speaker Phillips: Tobacco is a killer. Thats why I am transmitting a bill today to increase the excise tax on cigarettes and other tobacco products. A recent state study of youth behavior says Alaskas young people use tobacco products at a much higher rate than the national average. The implications for the future are sobering. As adults, Alaskans who started using tobacco at a young age will be at risk for smoking-related diseases and premature death. Health care costs for all of us will continue to rise as a result. 1997-01-13 House Journal Page 0048 HB 61 Its clear we need to act quickly to reduce the number of Alaska youngsters making the tragic decision to start smoking or chewing. One proven and very effective way to discourage such behavior is significantly increasing the cost of tobacco. The attached bill will raise the tax on cigarettes by $1 per pack. Ive often said I hope this new tax wont raise a dime--that would mean current smokers were changing their minds and young people werent starting at all. But even with reduced demand, this bill will generate more money for the state treasury--an estimated $40 million for Fiscal Year 1998. I am proposing these new revenues be legislatively designated for education and childrens health programs. I urge your support of this important legislation. Sincerely, /s/ Tony Knowles Governor