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Alaska: Governor will soon decide on e-cigarette taxes and other restrictions

Alaska: Governor will soon decide on e-cigarette taxes and other restrictions

2022-08-30

On August 30, according to foreign reports, earlier this year, both houses of the Alaska State Legislature passed a bill that would tax vaping products statewide and prevent the U.S. Postal Service from delivering in the state.


Now, Governor Mike Dunleavy is considering whether to sign SB 45 into law or veto it.


The governor has until September 16 to make a decision. If he does nothing, the bill will automatically pass and go into effect on January 1, 2023. If Governor Dunleavy signs the bill or allows it to become law, he would be breaking his 2018 campaign promise not to pass any new 25% tax.


Alaska residents can call the Governor's Office at 907-465-3500 to register an objection or email the Governor using CASAA's call to action. CASAA has created a pre-written message asking the governor to veto the bill, it can be amended to explain your resignation story, or completely discarded and replaced with personal information.


While the final version of SB 45 passed by the legislature did not include a flavor ban, the bill still contains a number of elements that would create barriers for Alaska vapers. It will impose a 35% wholesale tax on all vaping products, including devices, and will end Alaska’s exemption from the U.S. Postal Service’s ban on shipping vaping products within the state.


The bill also includes onerous licensing and reporting requirements for small vaping businesses, including out-of-state retailers.


Gov. Dunleavy is considering a bill that would make it more difficult to obtain vaping products in rural areas of the state, which means much of the state, and would significantly increase the cost of vaping for all Alaskan vapers.


Five of the state's 19 organized boroughs (counties) already have steep vaping product taxes, including a 55 percent tax in Anchorage, where about 40 percent of the state's population lives. Adding another 35 percent to existing high local taxes could make vaping unaffordable for many Alaskan residents.


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