Alaska Senate Passes Bill to Tax E-cigarettes Statewide

On May 16, according to a report by the Juneau Empire, the Alaska State Senate passed a bill on e-cigarette taxation with 14 votes in favor and 6 against. The bill imposes a 25% tax on retail e-cigarette products across the state. The bill was introduced by Gary Stevens, the Republican Senate President and will now be presented to the House for review.

Taxation and Enforcement of Fines

The bill not only imposes a 25% tax but also aligns Alaska's regulations with the 2019 federal law, raising the legal minimum age for purchasing, selling, or distributing these products to 21 years old, which is two years higher than Alaska's current legal age.

The proposed legislation to update the legal age will ensure the implementation of the national enforcement plan, meaning that individuals found to possess nicotine products under the age of 21 may face fines of up to $150. However, this amount has been reduced from the originally proposed $500 fine.

This measure aims to reduce the problem of nicotine addiction among young people in order to protect public health and safety. Supporters of the bill state that this is a response to the rapidly growing issue of youth nicotine use and emphasize the necessity of taking these measures.

Opposing views/voices

However, some lawmakers have different opinions on the bill. Republican Senator Shelley Hughes believes that imposing a 25% tax and reducing fines to $125 has not achieved enough results, and she voted against it.

She stated that she would not approve any tax before it goes through the Senate and believes:

A fine of $500 carries more deterrent value for high school students than a few dollars in taxes.

Regarding the impact of this bill, a clerk at an e-cigarette store in downtown Alaska stated that even with an increase in taxes, it is unlikely that young people’s desire to purchase the products will be deterred.

He stated that he has been smoking since he was a teenager and despite the rising cost and taxes on nicotine, he still continues to smoke.

If you are addicted to something and you want it, you will get it.

He believes that prevention is the best method to keep young people away from nicotine products, and increasing taxes does not help to solve the problem.

Currently, this bill will be submitted to the House for further discussion and review.

Reference:

The Senate has approved a measure to levy a state-wide tax on electronic cigarettes.