IMPORTANT NOTICE FOR WHOLESALERS, DISTRIBUTORS AND RETAILERS

Effective August 1, 2008, only fire safe certified and MSA compliant cigarettes can be imported and stamped in Alaska.  As a result, there are now (2) certification directories or lists on our website that you need to refer to before selling, importing or stamping tobacco products.  Below is a chart that will help wholesalers, distributors and retailers to determine if a tobacco product is certified for sale or importation in Alaska:

GENERAL INFORMATION

Alaska levies a tax on cigarettes and tobacco products that are imported or transferred into Alaska.  The division collects tobacco taxes primarily from licensed wholesalers, distributors and retailers.

The cigarette tax applies to cigarettes imported into the state for sale or personal consumption.  The division collects this cigarette tax through the sale of tax stamps.  With few exceptions, all cigarettes for sale in the state must have a valid tax stamp affixed to the bottom of the cigarette package.  Unstamped cigarettes are contraband and subject to seizure.

Effective August 1, 2008, cigarette distributors/wholesales may only import and stamp cigarettes brand styles of manufacturers that have certified to the Tax Division that their product is both MSA compliant and fire safe certified (FSC).  Since there is a “sell through period”, distributors and retailers can continue to sell non-FSC cigarettes if they were in inventory and stamped before August 1, 2008.  Cigarettes that do not meet the criteria outlined in this paragraph are contraband and subject to immediate confiscation and destruction.

Tobacco tax returns are filed monthly and due with payment of tax by the last day of the month following the month in which sales were made.  Taxpayers may deduct .4% of the tax due to cover the expense of accounting and filing returns.

The State of Alaska also publishes Cigarette Presumptive Minimum Price Index and monthly statistics reports. Archived Cigarette Presumptive Price Indexes and monthly tobacco statistics reports are also located under Reports below.

Tobacco tax statistics and detailed information regarding returns, exemptions, credits and disposition of revenue can be found in the Tax Division Annual Report.