Sponsor Statement for HB 52

Increase Tobacco Tax

The first part of House Bill 52 would increase the tax on cigarettes by $1.00 per pack and a comparable amount on other tobacco products. It would also make an additional $.24 increase in three years and another $.24 in six years.

The second part of the bill determines that money from the tax would go in the SCHOOL FUND established previous to statehood. Five cents of the current tobacco tax is already going into that fund. Use of the SCHOOL FUND is restricted to K-12 school construction or rehabilitation.

Alaska has a severe problem, which is increasing acutely. As we continue to downsize and reduce government spending, the capitol budget for school construction has not been enough to meet the demand. Alaska’s school children are entitled to school buildings that provide a safe and healthy environment. Increasing the SCHOOL FUND via the tobacco tax would be the solution. Historically, this fund has been used to repay bonded indebtedness for school construction, which would allow for maximizing these moneys as needs dictate.

In sponsoring this bill, I have not changed my opposition to increasing the tobacco tax, but I am willing to compromise because such a large number of Alaskans have said they support an increase in the tobacco tax and I believe I am here to represent all of Alaska’s people. By putting the money into the SCHOOL FUND, we can all be winners.