Today, the Ketchikan Gateway Borough Assembly will hold a hearing on a proposed tobacco tax and cast their first vote before the meeting comes to a close.
The tobacco tax proposal is a whopping $3.00 per pack on cigarettes, but more importantly there is a 75% wholesale tax on other tobacco products.
The proposed tobacco tax was passed by a 4-3 vote on whether or not to draft the proposal. If the official proposal is approved tonight, there will be a second vote to make it a law.
Alaska currently has a 75% tax on OTP; and the Ketchikan tax would be in addition making it a total 150% tax.
UPDATE 8/4/2015: The ordinance was passed last night but it changed substantially as the Assembly voted 4-3 to put the measure in front of voters this October. However for that to happen it still needs to pass one more vote at the Assembly level.
UPDATE: 8/18/2015: Last night the Assembly voted to postpone a vote on a planned tobacco tax by a measure of 4-3. The change occurred when Todd Phillips who was in favor of the proposal, changed his vote and thus changed the outcome.
According to KRBD, a community radio station Mr. Phillips stated, “Are we really here as a body to tell people what health choices to make? If we are, make them illegal. Alcohol can harm you, make it illegal. Are we going to start taxing candy? Are we going to start saying anyone who weighs over 200 pounds at a certain height can’t have Obamacare?”
