A new bill in Alaska would increase the tax on cigars to 100 percent of the wholesale price.
At the request of Gov. Bill Walker, HB304 has been introduced. It would raise the taxes on cigarettes, electronic cigarettes and other tax products.
The current tax on cigars in Alaska is 75 percent of the wholesale price. This means a cigar with a suggested retail price of $9.50 likely retails for around $16.63 in Alaska. If passed, the law would mean that Alaska would have the highest tax on cigars of any state in the U.S. Currently Utah and its 86 percent wholesale tax lead the nation in high effective rates.