Alaska Bills - 100% tax on electronic smoking products

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HB 304 In the house --> http://www.legis.state.ak.us/basis/Bill/Text/29?Hsid=HB0304A

SB 133 in the senate --> http://www.legis.state.ak.us/basis/Bill/Text/29?Hsid=SB0133A

Sec. 6. AS 43.50.300 is amended to read:
28 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products
29 and electronic smoking devices in the state at the rate of 100 [75] percent of the
30 wholesale price of the tobacco products or electronic smoking devices.

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* Sec. 14. AS 43.50.390 is amended by adding a new paragraph to read:
15 (6) "electronic smoking device"
16 (A) means
17 (i) an electronic cigarette, electronic cigar, electronic
18 cigarillo, electronic pipe, or other similar device that is used to
19 aerosolize and deliver nicotine or other substances to the person
20 inhaling from the device; and
21 (ii) a component, solution, vapor product, or other
22 related product of an electronic cigarette, electronic cigar, electronic
23 cigarillo, electronic pipe, or other similar device;
24 (B) does not include a
25 (i) battery or battery charger that is sold separately;

 

[Toronnah]

If I'm reading the definitions properly, the tax would be on the tanks and coils, not juice nor apvs.

 

[Vaslovik]

Wow! That's so incredibly fascist! Just who is it there in Alaska who is such a hater on vaping?

 

[squee]

If I'm reading the definitions properly, the tax would be on the tanks and coils, not juice nor apvs.

No, on juice too:

(ii) a component, solution, vapor product, or other
22 related product

That could also include apvs, mods, and such. It doesn't include batteries, i.e. 18650s and the charger for them. an apv is not a battery. It *includes* a battery or runs on a battery... but it isn't one.

 

[Toronnah]

Wow! That's so incredibly fascist! Just who is it there in Alaska who is such a hater on vaping?

Actually I don't see it as fascist at all. This is Alaska officially declaring ecigs legal. We have long debated how governments would try to find a way to tax these items. Well, here it is. Expect other states to follow a similar pattern.

That said, tobacco is at more than 100% tax in most jurisdictions.

Even at that, given the wholesale markup to retail, how much is it? A $20 bottle of premium juice wholesale for single digits. So maybe juice is now 25 or 26 dollars or whatever. It's not like it will be $40.

 

[Vaslovik]

Well I have to disagree here, I see it as a sin tax, which is a means of attempting to control the public by punishing them with high taxes on those things the powers that be want to discourage for whatever reason, like they did with cigarettes. A 100% tax? Suppose they did that with milk. What do you think the reaction would be? How about baby formula? Coffee?

I'm sorry, but I can't see it as anything but punitive toward vapers.

 

[retired1]

As more states feel the budget pinch, they're going to look at ways of fleecing tax dollars without a full scale revolt. As vapers are a very small minority of most states, the legislative bodies can levy outrageous taxes on our equipment and supplies and pretty much get away with it.

This is why they don't do the same thing with alcohol. While they'd rake in the bucks, far more people drink than those that vape. Any state that's attempted to tax the bejeebers out of alcohol was immediately inundated with howls of outrage by the majority of the voting public.

 

[sofarsogood]

For many years royalties from oil supported the Alaska government. That's not enough any more so they are scrounging for anything and everything. Any legislator can introduce any bill he wants. Most of them die. Is there serious support for this? The important money is from cigarettes so this would only be a way to protect that source of revenue. Keep people smoking and make sure kids smoke instead of vape. They are drug dealers. Why aren't we calling them that?

 

[Vaslovik]

As more states feel the budget pinch, they're going to look at ways of fleecing tax dollars without a full scale revolt. As vapers are a very small minority of most states, the legislative bodies can levy outrageous taxes on our equipment and supplies and pretty much get away with it.

This is why they don't do the same thing with alcohol. While they'd rake in the bucks, far more people drink than those that vape. Any state that's attempted to tax the bejeebers out of alcohol was immediately inundated with howls of outrage by the majority of the voting public.

I have to admit you make valid and credible points there. Still, it smacks of hatred toward vapers to me, or at least picking on those who are the target of hate already in expectation of being backed up in it by the haters.

 

[Vaslovik]

For many years royalties from oil supported the Alaska government. That's not enough any more so they are scrounging for anything and everything. Any legislator can introduce any bill he wants. Most of them die. Is there serious support for this? The important money is from cigarettes so this would only be a way to protect that source of revenue. Keep people smoking and make sure kids smoke instead of vape. They are drug dealers. Why aren't we calling them that?

I find myself in agreement with this. They are indeed drug dealers who care nothing about their victims, and everything about the money.

 

[Toronnah]

You guys are being naive if you ever thought vaping wouldn't be taxed as it replaces taxed tobacco.

 

[JCinFLA]

I can remember back to 2009 when I was in Haines, AK for several days. A carton of my off-brand smokes was $92 even then. So, yes, I agree that they're trying desperately to replace the very high amount of tax money they're losing by fewer people smoking. That's not to say that I agree with either tax being so ridiculously high.

 

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Update for HB 304:

CURRENT STATUS: (H) L&C THEN FIN

HEARING: (H) L&C Feb 24 3:15 PM BARNES 124 -- Public Testimony <Time Limit May Be Set> -- TELECONFERENCE
HEARING: (H) L&C Feb 27 10:00 AM BARNES 124 -- Public Testimony <Time Limit May Be Set> -- TELECONFERENCE

 

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Link to one of the summaries for the hearing. Committee Minutes

Most speaking in favor of the bill are part of the American Cancer Society Action Network. They've even got school aged kids in their crusade and reading their comments... well, someone needs to smack the little twits upside the head.

Props to Sen Stevens of Kodiak though for asking questions and good follow up questions. No clue what the outcome will be.

 

[greasegizzard]

Well I have to disagree here, I see it as a sin tax, which is a means of attempting to control the public by punishing them with high taxes on those things the powers that be want to discourage for whatever reason, like they did with cigarettes. A 100% tax? Suppose they did that with milk. What do you think the reaction would be? How about baby formula? Coffee?

I'm sorry, but I can't see it as anything but punitive toward vapers.

They don't want to discourage it. They want to profit from it.

 

[edyle]

Well I have to disagree here, I see it as a sin tax, which is a means of attempting to control the public by punishing them with high taxes on those things the powers that be want to discourage for whatever reason, like they did with cigarettes. A 100% tax? Suppose they did that with milk. What do you think the reaction would be? How about baby formula? Coffee?

I'm sorry, but I can't see it as anything but punitive toward vapers.

Todays sin tax will be tomorrow's sales tax.

 

[nicnik]

They've even got school aged kids in their crusade and reading their comments

They always open these hearings with any kids they have rounded up.

 

[MudVaper]

For many years royalties from oil supported the Alaska government. That's not enough any more so they are scrounging for anything and everything. Any legislator can introduce any bill he wants. Most of them die. Is there serious support for this? The important money is from cigarettes so this would only be a way to protect that source of revenue. Keep people smoking and make sure kids smoke instead of vape. They are drug dealers. Why aren't we calling them that?

There is huge support for this bill. I just came here to post about this and saw this thread already started. It began as a surcharge bill to penalize folks who file state taxes on paper rather than electronically.

 

[MudVaper]

Basically what this tax will do is put the B & Ms out of business up here, where retail prices are already sky high.

It will also have a huge impact on the new legalization of another smoking product that recently became legal in Alaska but we are not supposed to mention on this forum.

 

[sofarsogood]

Basically what this tax will do is put the B & Ms out of business up here, where retail prices are already sky high.

It will also have a huge impact on the new legalization of another smoking product that recently became legal in Alaska but we are not supposed to mention on this forum.

Are they going to build a wall around Alaska to keep out Fasttech and myfreedomsmokes? One of the reasons I think taxing vaping has made slow progress is that the money that comes from a vape tax is chump change. They piss off a lot of people, start a lot of trouble and get little money in return.