Alaska’s Governor Vetoes Bill Containing Tobacco Purchasing Age Increase

On Thursday, Alaska Gov. Mike Dunleavy vetoed SB 45, a bill that would raise the minimum age to to purchase tobacco products in the state from 19-years-old to 21-years-old, thus bringing the state in line with the federal minimum age. However, it is was not the age increase that led to the veto; rather it was an implementation of a the tax on electronic cigarettes and vaping products.

The bill sought to create parity in the excise tax rate on electronic smoking products, which are currently not subject to state-level taxes as they are not considered either cigarettes or other tobacco products (OTP), which includes things like premium cigars, pipe tobacco and other non-cigarette products. The bill would have subjected electronic smoking products to a tax rate of 35 percent of the wholesale price, which would still be less than the state’s rate of 75 percent of the wholesale price on other tobacco products.

“There were many conversations about what an appropriate level to tax would be, but ultimately a tax increase on the people of Alaska is not something I can support,” Dunleavy wrote in his veto letter to Senate President Peter Micciche.

Dunleavy did not say whether or not he supported the age increase, but noted that it is not possible to separate out components of a bill once it has been passed by the legislature.

Since the governor vetoed the bill after the adjournment of the legislature’s second regular session, the veto will not be addressed unless a special session is called before the next legislative session convenes.