Alaska Governor Vetoes Bill Raising Tobacco Age and Adding Vape Tax

Sep.13.2022
Alaska Governor Vetoes Bill Raising Tobacco Age and Adding Vape Tax
Alaska's governor vetoed a bill that would raise the age for tobacco and e-cigarette products to 21.

Source: Eyegelb.


The governor of Alaska, Mike Dunleavy, has vetoed SB 45, a bill that would have raised the minimum age for buying electronic cigarettes and other tobacco products from 19 to 21 in the state. This move would have brought the state in line with federal minimum age requirements.


The governor vetoed the bill because it also included a tax on e-cigarettes and other vaping products.


This bill seeks to achieve equality in the consumption tax rate of electronic cigarettes, as currently they are not classified as cigarettes or other tobacco products (OTP) and thus do not have to pay state taxes.


This legislation will impose a wholesale tax rate of 35% on electronic cigarette products, which is still lower than the state's 75% wholesale tax rate on other tobacco products.


The decision by Governor Dunleavy to veto the bill has been welcomed by Alaskans who rely on vaping products. The tax reform director of Americans for Tax Reform, Tim Andrews, stated that rejecting the tax would make it easier for current smokers to quit using vapor products. Governor Dunleavy's veto power was necessary and appropriate as a signer of the ATR taxpayer protection pledge, where he promised to oppose all tax increases. This decision demonstrates his dedication to Alaska taxpayers, and we commend his science and taxpayer-supported move.


Deng Liwei did not state whether he supports increasing the age, but he pointed out that once the legislative body passes a bill, it is impossible to separate its components.


In his veto letter to Senate President Peter Micciche, Dunleavy wrote, "There has been much discussion about appropriate tax levels, but ultimately I cannot support raising taxes on the people of Alaska.


According to Halfwheel, the veto power will remain unresolved unless a special session is called before the next legislative meeting, as the governor vetoed the bill after the adjournment of the second regular session.


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