News from Senator Bert Sharp

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
web site: http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: April 10, 1997 Contact: Senator Bert Sharp 907/465-3004

Senate Passes Tobacco Tax Bill

Establishes Aggressive Anti-Tobacco Campaign

Juneau -- The Alaska State Senate Thursday passed Senator Bert Sharp’s tobacco tax bill that increases revenues through a tobacco tax. The proceeds will be used for an anti-tobacco campaign and for rehabilitation, construction and repair of the state’s school facilities. The bill passed by a vote of 16 to 4.

"SB 13 is not just a revenue bill," said Senator Sharp, Co-Chair Senate Finance. "It is an education bill and a health bill as well."

SB 13 calls for a tax increase on cigarettes of $1.00 per pack and increases the excise tax on all other non-cigarette tobacco products from 25 percent to 100 percent of wholesale value. Sharp has suggested two separate taxes so that the estimated revenue from each tax can be dedicated to different uses.

"The intent of my legislation differs from the other tobacco tax bills introduced in the House and Senate because my bill uses the non-cigarette portion of the tobacco tax to establish an aggressive anti-tobacco campaign targeting children." Sharp said. "This revenue will also be used for establishing grants to municipalities that are willing to detect and prosecute those people who provide tobacco products to children."

"These revenues from cigarettes would be deposited to the existing ‘dedicated school fund’ to be used for rehabilitation, construction and repair of state schools, " said Sharp.

Sharp noted that his version of the Tobacco Tax legislation is a moderate approach to the tax. "SB 13 will help strengthen the public’s awareness about the health hazards caused by tobacco," said Sharp. "Based on my personal knowledge, this will save many of Alaska’s children from forming a habit that will cause agonizing health problems in their future."

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