Alaska governor vetoes e-cigarette tax bill: I cannot support taxing the people a In a Sept. 8 letter to the chairman of the Alaska Senate, Gov. Mike Dunleavy said he has vetoed Senate Bill 45, which would have imposed a tax on e-cigarettes Tobacco products are subject to a 35% wholesale tax and strict restrictions on shipping options to e-cigarettes in Alaska.

The bill also harmonizes state minimum ages for purchasing tobacco and vaping products with federal law.

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

It is uncertain whether the state legislature will try to override the governor's veto.

Earlier this year, both houses of the Alaska State Legislature passed a bill that would tax vaping products statewide and prevent U.S. mail from being delivered within the state. Now, Governor Mike Dunleavy is considering whether to sign SB 45 into law or veto it.

The governor has until September 16 to make a decision. If he does nothing, the bill will automatically pass and go into effect on January 1, 2023. If Governor Dunleavy signs the bill or allows it to become law, he would be breaking his 2018 campaign promise not to pass any new 25% tax.

Alaska residents can call the Governor's Office at 907-465-3500 to register an objection or email the Governor using CASAA's call to action. CASAA has created a pre-written message asking the governor to veto the bill, it can be amended to explain your resignation story, or completely discarded and replaced with personal information.

Adding another 35 percent to existing high local taxes could make vaping unaffordable for many Alaskan residents.

While the final version of SB 45 passed by the legislature did not include a flavor ban, the bill still contains a number of elements that would create barriers for Alaska vapers. It will impose a 35% wholesale tax on all vaping products, including devices, and will end Alaska’s exemption from the U.S. Postal Service’s ban on shipping vaping products within the state. The bill also includes onerous licensing and reporting requirements for small vaping businesses, including out-of-state retailers.

Gov. Dunleavy is considering a bill that would make it more difficult to obtain vaping products in rural areas of the state, which means much of the state, and would significantly increase the cost of vaping for all Alaskan vapers.

Five of the state's 19 organized boroughs (counties) already have steep vaping product taxes, including a 55 percent tax in Anchorage, where about 40 percent of the state's population lives. Adding another 35 percent to existing high local taxes could make vaping unaffordable for many Alaskan residents.

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