The Alaska Legislature has approved Senate Bill 24, marking the state’s first-ever tax on electronic cigarettes and vapor products. Passed in the final days of the legislative session, the bill represents a major victory for retiring Senate President Gary Stevens in his multi-year campaign to protect Alaskan youth from nicotine addiction.
Supporters argue that price-sensitive youth will be deterred by the new 25% retail tax and the strict purchase age limit of 21. Representative Sara Hannan noted during floor debates that delaying nicotine introduction significantly reduces the severity of lifelong addiction. Additionally, the bill lowers the maximum fine for minors possessing these products from $300 to $100.
Opponents of the bill, however, expressed concerns over government overreach and taxation. Representative Jamie Allard argued that 18- and 19-year-olds are adults who should have the freedom to choose whether to vape, characterizing the legislation as an unnecessary tax bill rather than a health measure.
Unlike the 2022 version vetoed by Governor Mike Dunleavy—which proposed a 45% wholesale tax—SB 24 levies a 25% tax at the retail level. This shift accommodates retailers who assemble vaping devices in-store from various liquid components, making wholesale tracking impractical.
| Legislative Attempt | Proposed Tax Rate & Level | Key Features & Status |
|---|---|---|
| 2022 Bill | 45% Wholesale Tax | Passed Legislature; vetoed by Gov. Dunleavy to avoid new taxes. |
| 2024 Bill | Tax Provisions Stripped | Tax language removed by House majority; bill died. |
| Senate Bill 24 (Passed) | 25% Retail Tax | Passed both chambers; includes synthetic nicotine and cigar bar exemption. |
The bill's passage was not without friction. A last-minute amendment introduced by Representative Kevin McCabe permits indoor smoking at designated specialty cigar bars to boost local economies. Public health groups, including the American Heart Association, strongly condemned this addition, warning that there is no safe level of exposure to secondhand smoke.
While Alaska joins the majority of U.S. states in taxing e-cigarettes, the federal government still levies no excise tax on these products. Nationally, youth vaping has declined from its 2019 peak due to flavor bans and public education campaigns like Alaska's "Not Buying It" program. However, federal regulations remain in flux, highlighted by the FDA's recent authorization of certain flavored vapes.
Meet Nick Schager, the co-founder of our vaping website. With a solid foundation of over 10 years in the industry, Nick brings an unparalleled depth of knowledge, having an extensive understanding of more than 1000 vaping products.
