Cigarette tax to go up

Posted: Tuesday, June 12, 2007

If you light up, it's going to cost an extra penny per cigarette starting next month.

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The Department of Revenue announced a cigarette sales tax increase - 20 cents per pack - that goes into effect July 1.

The rate hike is part of a phased-in tax increase that goes back to a 2004 special legislative session, department officials said Monday.

Cigarettes that were in the state on or before June 30 will not be part of the new tax rate.

The rate could be higher, depending on the manufacturer.

Those companies which were part of the 1998 agreement between 46 states and major tobacco companies will see a 1-cent per cigarette increase.

Companies not part of the agreement see a slightly higher hike, just over 11 cents per cigarette, or a tax of $2.25 per pack. The state's tax department Web site has a complete list of cigarette companies affected by the hike: http://www.tax.state.ak.us/LicQuery/tob.aspx.



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