Alaska Governor Vetoes Bill to Tax Vapes!
It is reported that on September 8, local time, Alaska Governor Mike Dunleavy stated in a letter to the Senate President that he has vetoed Senate Bill 45, which would have imposed a 35% wholesale tax on vapes and severely restricted shipping options for Alaska vapes users. The bill also reconciles the state minimum age for purchasing tobacco and vapes with federal law.
The bill attempts to equalize excise tax rates on vapes with regular cigarettes, which are currently not considered cigarettes or other tobacco products (OTPs) and therefore not subject to state taxes.
Earlier this year, both houses of the Alaska State Legislature passed Act 45, and while the passage of Act 45 did not include a flavor ban, the bill still contains many elements that would inconvenience users of e-atomizers in Alaska. The bill would impose a statewide tax on vapes and prohibit vapes mailings within the state, as well as impose licensing and reporting requirements on small vapes businesses, including out-of-state retailers.
Tim Andrews, director of consumer issues for Americans for Tax Reform, said, "Rejecting the tax increase would make it easier for those who currently smoke to quit through the use of vapes. governor Dunleavy's veto was necessary and appropriate. "
In a letter to the Senate, Mike Dunleavy wrote, "There has been a lot of discussion about imposing appropriate taxes, but ultimately I am not in favor of raising taxes on the people of Alaska."
Information source: Vaping360