News from Senator Bert Sharp

Alaska State Legislature

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

Legislature Votes to Increase Tobacco Tax for Anti-Tobacco Campaign -- Health, Education and Enforcement

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

Juneau -- The Alaska State House Saturday voted to raise Alaska’s tobacco tax by $.71 cents to a dollar. Revenues will help form an anti-tobacco campaign aimed at stopping kids from smoking before they start and will also be used for enforcement and construction and repair of the state’s school facilities.

Senate Bill 13, sponsored by Senator Bert Sharp (R-Fairbanks) passed by a vote of 23 to 17. "I am pleased the House passed Senate SB 13. I have seen the agonizing effects tobacco has had on people close to me and feel we cannot do enough to try and stop kids from forming a fatal habit," said Sharp, Co-Chair Senate Finance Sharp.

"Senate Bill 13 is not just a revenue bill, it is an education, health and enforcement bill," Sharp said.

Increasing the tobacco tax on cigarettes to $1.00 per pack will provide $30 million in revenues that will be deposited directly into a state school fund. The "school fund" is a dedicated fund that is used exclusively to rehabilitate, construct and repair the State’s education facilities (Sec. 43.50.140).

"This new revenue stream will provide opportunities to establish a much needed ongoing statewide school construction program," said Sharp. "SB 13 goes beyond text books and teachers. It also provides a sustainable money source so that we can build new schools and keep our existing facilities in good condition."

SB 13 also increases the excise tax on all non-cigarette tobacco products from 25 percent to 75 percent of wholesale value.

"The non-cigarette portion of the tobacco tax may be used to establish an aggressive anti-tobacco campaign targeting children and for establishing grants to municipalities willing to detect and prosecute those people who provide tobacco products to children." Sharp said.

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