Vape Tax, Tobacco 21 Clears Alaska Senate, Heads to House
- News This Week Taxation
- April 22, 2022
- 3 minutes read
The Alaska Senate on Wednesday evening passed a bill that would raise the legal age to buy and sell vaping and other tobacco products from 19 to 21. It would also impose the first statewide tax on vaping.
If the bill passes through the Alaska House of Representatives, e-cigarettes or vapes would be taxed at 45 percent of their wholesale price, according to Alaska’s News Source. The Senate passed SB 45 on a 15-4 vote. All four of the “no” votes were by Republicans.
There would be some exceptions under the new bill if it becomes law. Alaskans who are 19 and older who currently sell tobacco products would be grandfathered into the new age limits. Tobacco cessation devices that are approved by the Food and Drug Administration would not incur the new tax rate for e-cigarettes.
SB 45 also toughens up age-verification requirements for sellers of tobacco while cutting the fine on violations for underage smokers from a maximum of $500 to $300.
In 2019, former President Donald Trump signed a bill into law that raised the federal age to consume tobacco products to 21. Alaska is currently one of 12 states that have not made the same shift in state law.
The legislative session must end by May 18.