Alaska Passes New Vape Tax & Legal Smoking Age Raised to 21
The Alaska Legislature has passed Senate Bill 24 to impose a new 25% retail tax on e-cigarettes and formally raise the state’s legal tobacco purchase age from 19 to 21. Cleared on the final day of the legislative session, the bill now awaits action from Governor Mike Dunleavy.
The bipartisan bill, sponsored by Senator Gary Stevens and Representative Andy Josephson, aims to establish regulatory parity between traditional tobacco products and vaping. Currently, electronic smoking products escape state taxation because they are omitted from legacy tobacco statutes.
If signed into law, the new 25% retail tax is projected to generate between $1.36 million and $3 million in its first year. This compromise rate follows Governor Dunleavy’s 2022 veto of a similar bill that proposed a higher 35% wholesale tax.
Updating Alaska’s legal purchase age to 21 matches the federal standard enacted in 2019, resolving enforcement confusion for retailers. The policy shift comes as youth vaping in Alaska shows progress; state data reveals high school e-cigarette use fell from 26% in 2019 to 17% in 2023.
| Product / Violation | Current Alaska Policy | Proposed Policy (SB 24) |
|---|---|---|
| Vapes & E-Cigarettes | Untaxed at state level | 25% retail sales tax |
| Cigarettes | $2.00 per pack tax | Unchanged |
| Other Tobacco Products | 75% wholesale tax | Unchanged |
| Underage Possession Fine | Varies / No state statute | $100 fine for minors |
The legislative journey included intense debate. Representative Will Stapp unsuccessfully proposed exempting active-duty military personnel aged 19 and 20 from possession fines, arguing it is hypocritical to penalize young service members prepared for combat.
Additionally, lawmakers adopted a late amendment from Representative Kevin McCabe to legalize cigar lounges, permitting on-site smoking at these establishments. While some health advocates opposed the addition, it passed narrow margins to remain in the final bill.
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