According to vaping360, the largest city in Alaska, quietly Mimi passed a bill to tax electronic cigarette products. The tax was unanimously passed by the anchorage Council and will take effect on January 1, 2021.
The bill added atomization products (including equipment and electronic cigarette liquid) to the city's existing "other tobacco products" tax, which is now set at 55% of the wholesale cost, the report said. According to Alaskan public media, the Congress changed the law to exempt devices used for cannabis atomization. (recreational marijuana is legal in Alaska.)
Representatives of the usual anti tobacco and anti electronic tobacco groups support the tax. Marge stoneking of the American Lung Association says smoking has been down for decades, but e-cigarettes may reverse the trend.
"Right now, e-cigarettes are making a new generation of young people addicted and threatening all these advances," she said. Higher taxes on tobacco products have led to fewer children starting to smoke and more adults to quit smoking, while providing income for the city. "
Shaun d'sylva, owner of anchorage's e-cigarette store, which has an e-cigarette business in Washington state, disagrees with an increase in e-cigarette taxes.
"There seems to be a problem with levying such a tax on e-cigarettes that actually help people stay away from flammable cigarettes and actually save state and local resources," d'sylva told members.
Finally, after an amendment to exempt marijuana products, 10 members of Congress, including Republicans and Democrats, supported the tax. The reason most people say is to protect children.
Anchorage is a unified town government (Alaskan towns are essentially counties) with a population of about 290000. Anchorage is the largest city (and borough) in Alaska, accounting for almost 40% of the state's population.
Several other cities and municipalities in Alaska are imposing VAT. The nearby autonomous town of Matanuska Susitna charges almost 55% of the wholesale tax. Juno, the northwest Arctic and Petersburg boroughs all impose a 45% wholesale tax on products containing nicotine.