Alaska House panel hears push to raise tobacco age to 21, tax vapes at 25%

The Alaska House Finance Committee heard testimony Monday on legislation that would raise the state's legal age to buy, sell, and possess tobacco products from 19 to 21 and impose a 25% retail price tax on vapor products.

Senate Bill 24 would align Alaska with federal law, which has required buyers to be 21 since December 2019, though state statute still sets the minimum age at 19. Senator Gary Stevens, a Kodiak Republican who has pursued the age increase since the 2015-2016 legislative session, said the bill aims to protect children from nicotine addiction. "This bill is about protecting our children from becoming addicted to nicotine," Stevens told the committee. "The tobacco industry has responded to the decline in cigarette smoking with vaping devices, particularly designed to appeal to our young children. And it's working. It's working very well."

The bill also proposes the retail price tax on e-cigarettes and vaping products, a structure that drew sharp criticism from retailers who said it would reward black-market sellers.

Mark Sundquist, owner of Hillside and Southside Chevron stores in Anchorage, told the committee he supports raising the age to 21 but opposes the tax structure. "My concern lies with the proposed 25% retail price tax on vapor products," Sundquist said. "Price-based taxes distort the market and disproportionately harm compliant small businesses."

Sundquist said a retail price tax rewards ultra-cheap illicit disposable products that already dominate the market. He urged the committee to replace the retail price tax with a per-milliliter wholesale tax, which he said would be fairer and easier to administer. "In this case, this product, if you decide to do it on a retail space, it would be the only product in my store that I would tax in the store," Sundquist said. "Everything else comes from the wholesaler pre-tax. The advantage to the state would be that if you tax it at the wholesaler, you'll always get your taxes."

Public health advocates countered that raising prices is one of the most effective tools to reduce youth tobacco use. Lauren Simpson Gomez, government relations director for Alaska and Hawaii for the American Heart Association, said tobacco tax increases significantly reduce use, particularly among youth. "Increasing taxes on all tobacco products, including e-cigarettes, cigarettes, and cigars, is also one of the most effective strategies available," Simpson Gomez said. "Tobacco tax increases significantly reduce use, particularly among youth, and are a proven tool to drive cessation."

Testimony from school officials underscored the scope of youth vaping in Alaska. Aaron Osterback, an Anchorage community member who works in the prevention field, told the committee that vaping suspensions are the second-leading cause of school discipline in his district. Over five years, the district recorded 1,179 total suspensions for e-cigarettes and vapes, an average of 235 students per year. That translates to between 1,175 and 2,350 missed school days annually under the district's suspension policy, which requires students to leave school for five to 10 days.