News from the Senate Majority

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

For Immediate Release: February 4, 1997 Contact: Senator Bert Sharp 907/465-3004

Tobacco Tax Bill To Establish Aggressive Anti-Tobacco Campaign

Sharp’s Bill Receives First Hearing In Senate HESS February 5, 1997

Juneau -- Increasing revenues through a tobacco tax for an anti-tobacco campaign and for rehabilitation, construction and repair of the state’s school facilities is proposed in Senate Bill 13 introduced by Senator Bert Sharp (R-Fairbanks).

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

Senator Gary Wilken, Chair of the Senate HESS Committee noted that SB 13 will receive its first hearing in the Senate Health, Education and Social Services (HESS) committee on Wednesday, February 5, at 9am.

"This issue has been bantered about in the halls of Juneau and indeed, throughout the State," said Wilken. "We’re anxious as members of the Senate HESS committee to start the discussion on this issue that is so important to many Alaskans."

SB 13 calls for a tax increase on cigarettes of $1.00 per pack and increases the excise tax on all other tobacco products (non-cigarette) 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."

"The tax 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.

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