Alaska Lawmakers Pass Tobacco 21 Bill, E-Cig Tax

The Alaska Legislature gave its approval to SB 45, a bill that raises the minimum age to purchase, sell, exchange, or possess electronic nicotine-delivery system (ENDS) products to 21-years-old, as well as makes changes to the tax rate on electronic smoking products.

The bill includes an imposed tax rate of 35 percent of the wholesale price for ENDS products, a notable difference from the state’s tax rate for other tobacco products, which is 75 percent of the wholesale price.

If signed into law, it would bring the state into alignment with the federal minimum age. As such, it allows state and local law enforcement agencies to enforce the federal minimum age, including fining retailers or others for selling or otherwise providing tobacco products to a person under 21-years-old, according to Halfwheel.

It also amends the state’s minimum age to possess ENDS and other tobacco products to 19-years-old. Violators of that law will be subject to a fine of up to $150.

For retailers, they will now be required to only allow tobacco products to be sold by employees who are at least 21-years-old, unless they were at least 19-years-old at the time the bill goes into effect.

The bill now heads to Gov. Mike Dunleavy for his signature. If the governor does not veto the bill, the changes will go into effect on July 1, 2023.