Alaska Information
Tobacco Taxes
Alaska's excise tax per pack of cigarettes: $1.000
Alaska's excise tax collection for the
fiscal year ending June 2002: $40,434,000
Local tax on tobacco products: $5,810,000
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
|
Who Profits from
Cigarette Sales? 
click for larger view |
Comparing Excise Taxes on Cigarettes, Beer and Wine
click for larger view |
Number of six-packs of beer that must be sold in Alaska to produce the same state excise tax revenue generated by one carton of cigarettes: 16.6 |
click for larger view |
Number of bottles of wine that must be sold in Alaska to produce the same state excise tax revenue generated by one carton of cigarettes: 20.2 |
Alaska Smokers' Contributions
to the State Economy - FY2003
In 2002, Alaska smokers comprised only 29.4%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
40,239,000 |
Smokers Pay Local Excise Taxes2 |
$ |
5,918,000 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
24,904,000 |
|
$ |
71,061,000 |
Smokers' Economic/Tax Profile 2002
Alaska smokers' median household income |
$ |
34,861 |
Alaska nonsmokers' median household income |
$ |
52,747 |
- Working Families Pay More1
31% of Alaska smokers had household income LESS THAN $25,000
17% of Alaska smokers had household income EQUAL TO or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker excise tax/tobacco settlement payments liability in 20024
Total average paid per Alaska smoker in excise and sales taxes |
$ |
360 |
Cost per Alaska smoker for settlement payments to Alaska |
$ |
194 |
Total annual payments to Alaska per smoker |
$ |
554 |
Total annual payments to Alaska per nonsmoker |
$ |
0 |
Alaska Smoker Facts 5
- Alaska smoker payments in FY2003 were:
- Nearly three times larger than FY2003 state excise taxes on alcoholic beverages ($25.4 million).
- Nearly twice as large as FY2003 state motor fuels taxes ($37.4 million).
- Larger than FY2003 corporate income taxes -- other than oil and gas ($47.7 million).
- The total FY2003 amount paid by smokers in Alaska would have more than funded FY2003 authorized expenditures for each of the following:
- Pupil Transportation ($53.9 million)
- Commercial Fisheries Programs ($49.1 million)
- Wildlife Conservation ($27.7 million)
- Juvenile Justice ($34.6 million)
- Maternal, Child, and Family Health ($15.7 million)
- Community Mental Health Grants ($36.7 million)
- University of Alaska Southeast (Juneau, Ketchikan, and Sitka campuses - $34.4 million).
TOTAL SMOKER CIGARETTE PAYMENTS TO ALASKA
FY2003 |
Per year: |
$ |
71,061,000 |
Per day: |
$ |
194,554 |
Per hour: |
$ |
8,106 |
Per minute: |
$ |
135 |
Per second: |
$ |
2 |
|
CIGARETTES DON'T PAY TAXES -
ALASKA SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2002
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department.
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2002
5 Tax Comparisons are from the State of Alaska, Department of Revenue, Tax Division, FY2003 Annual Report of Division Operations. Online at http://www.tax.state.ak.us/programs/division/2003_Tax_Annual_Report.pdf. Budget comparisons are for operating budgets only and represent all fund sources unless noted. The figures come from the Alaska Office of Management and Budget, Governor Murkowski's FY2004 Budget and Investment Plan, online at http://www.gov.state.ak.us/omb/04_OMB/budget/budgthome.htm.
Master Settlement Agreement Payments To Date
$80,822,079 has been paid to Alaska since the Master Settlement Agreement was signed on November 23, 1998.
A summary of Alaska state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 19 or older to purchase tobacco products. |
Restricted Products |
Cigarettes, cigars, tobacco, or a product containing tobacco. |
Acceptable Forms of Identification |
A valid driver's license or a valid identification card if the license or identification card is made of or encased in plastic and contains a photograph of the license or card holder and a statement of age or date of birth. |
Fine/Penalty Schedule for Selling to Minors |
Violators will be subject to a civil penalty of $300 and license suspension for 20 days for a first violation; civil penalty of $500 and license suspension for 45 days for a second conviction within 24 months; civil penalty of $1,000 and license suspension for 90 days for a third conviction within 24 months; civil penalty of $2,500 and license suspension for one year for subsequent violations within 24 months. |
Affirmative Defense |
None. |
Minor Possession |
Knowingly possessing cigarettes, cigar, tobacco, or a product containing tobacco by a person under age 19 is a violation, punishable by a fine of at least $300. This provision does not apply, however, if the minor is a prisoner at an adult correctional facility. |
Sign Requirement
 |
Retailers must conspicuously display a sign at least 6 x 18 inches with lettering at least 1.25 inches in height that states:
THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 19 IS ILLEGAL. State law also requires some retailers (generally those with alcoholic beverage licenses, including package stores) to conspicuously display a sign at least 11 x 14 inches with lettering at least 1/2 inch in height and in contrasting colors that states:
WARNING: DRINKING ALCOHOLIC BEVERAGES SUCH AS BEER, WINE, WINE COOLERS, AND DISTILLED SPIRITS OR SMOKING CIGARETTES DURING PREGNANCY CAN CAUSE BIRTH DEFECTS. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Alaska to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Department of Community and Economic Development coordinates the inspections. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
|
[ Go Back ]
Information Copyright © by The Smokers Club, Inc. - (2214 reads) |
