Alaska governor vetoes e-cigarette tax bill: I cannot support taxing people a In a September 8 letter to the president of the Alaska Senate, Governor Mike Dunleavy said he had vetoed Senate Bill 45, which would impose a 35% wholesale tax on e-cigarette products and severely restrict Alaska’s transportation options for e-cigarettes.

The bill also harmonizes the minimum age for states to purchase tobacco and e-cigarette products with federal law.

Dunleavy said in a letter to the Senate that I cannot support a tax on the people of Alaska.

It is unclear whether the state legislature will attempt to override the governor’s veto.

Earlier this year, both houses of the Alaska Legislature passed a bill that would tax e-cigarette products statewide and prevent U.S. mail from being delivered within the state. Now Gov. Mike Dunleavy is considering whether to sign SB45 into law or veto it.

The governor must make a decision by September 16. If he does nothing, the bill will automatically pass and take effect on January 1, 2023. If Governor Dunleavy signs the bill or allows it to become law, he will violate a 2018 campaign promise not to pass any new taxes by 25%.

Alaska residents can call the governor’s office at 907-465-3500 to register objections or use CASAA’s call to action to send an email to the governor. The CASAA has created a pre-written message asking the governor to veto the bill, which can be revised to explain your resignation story, or discarded completely and replaced with personal information.

An additional 35% tax on top of existing high local taxes could make the price of e-cigarettes unaffordable for many Alaska residents.

Although the final version of SB45 passed by the Legislature did not include a flavor ban, the bill still contains many elements that will create obstacles for Alaska e-cigarette users. It will impose a 35% wholesale tax on all e-cigarette products, including equipment, and will end Alaska’s exemption from the U.S. Postal Service’s ban on shipping e-cigarette products within the state. The bill also includes onerous licensing and reporting requirements for small e-cigarette businesses, including out-of-state retailers.

The bill Gov. Dunleavy is considering would make it more difficult to obtain e-cigarette products in rural areas of the state, which means most of the state, and would significantly increase costs for all Alaskan e-cigarette users.

Five of the state’s 19 organized districts (counties) already impose high taxes on e-cigarette products, including a 55% tax in Anchorage, where about 40% of the state’s population lives. An additional 35% tax on top of existing high local taxes could make the price of e-cigarettes unaffordable for many Alaska residents.