AlaskaSB 16434th Legislature (2025-2026)Senate

ELIMINATE TAX DISCOUNTS

Sponsored By: Kelly Merrick (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Tobacco licensees get full stamp refunds

Beginning July 1, 2026, Alaska licensees get refunds or credits at full cigarette stamp value, without subtracting the former discount. Unused or damaged stamps qualify. Stamps also qualify on cigarettes that are unfit for use or sale, destroyed, or returned to the manufacturer. For those cigarettes, licensees must show the department they have not been and will not be consumed in Alaska. Stamps on cigarettes sold or distributed outside Alaska qualify with the same proof and required licenses in those jurisdictions.

Fuel tax remitters lose filing deduction

Beginning July 1, 2026, Alaska fuel dealers and users must remit the full fuel tax and surcharge due. They no longer keep 1% of the monthly amount, capped at $100, for filing on time. Dealers collect the tax and surcharge at sale and remit them by the last day of the following month. Dealers and users must include a statement showing all fuel distributed or used during the month. Any added household cost depends on whether businesses raise fuel prices.

Tobacco businesses lose tax filing discounts

Beginning July 1, 2026, Alaska tobacco tax licensees lose their 0.4% deduction for accounting and filing costs. They must remit the full tax due with their monthly return and pay full value for cigarette stamps. The former yearly stamp discount was 3% on the first $1 million and 2% on the next $1 million. Purchases above $2 million already received no discount. Any added household cost depends on whether businesses raise tobacco prices.

Sponsors & Cosponsors

Sponsor

  • Kelly Merrick

    Republican • Senate

Cosponsors

  • Sara Hannan

    Democratic • House

  • Andy Josephson

    Democratic • House

  • Dan Saddler

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 76 • No: 22

House vote • 5/20/2026

EFFECTIVE DATE(S) ADOPTED Y35 N4 A1

Yes: 35 • No: 4

House vote • 5/20/2026

PASSED Y25 N14 A1

Yes: 25 • No: 14

Senate vote • 3/31/2026

PASSED Y16 N4

Yes: 16 • No: 4

Actions Timeline

  1. (S) EFFECTIVE DATE(S) OF LAW 7/1/26

    6/19/2026Senate
  2. (S) LAW W/O GOVERNOR SIGNATURE 6/18 CHAPTER 14 SLA 26

    6/19/2026Senate
  3. (S) 10:14 A.M. 6/1/26 TRANSMITTED TO GOVERNOR

    6/4/2026Senate
  4. (H) CROSS SPONSOR(S): JOSEPHSON

    5/20/2026House
  5. (H) VERSION: CSSB 164(L&C)

    5/20/2026House
  6. (H) RETURN TO (S), TRANSMIT TO GOVERNOR NEXT

    5/20/2026House
  7. (H) EFFECTIVE DATE(S) ADOPTED Y35 N4 A1

    5/20/2026House
  8. (H) PASSED Y25 N14 A1

    5/20/2026House
  9. (H) READ THE THIRD TIME CSSB 164(L&C)

    5/20/2026House
  10. (H) ADVANCED TO THIRD READING UC

    5/20/2026House
  11. (H) READ THE SECOND TIME

    5/20/2026House
  12. (H) RULES TO CALENDAR 5/20/2026

    5/20/2026House
  13. (H) CROSS SPONSOR(S): HANNAN

    5/17/2026House
  14. (H) Minutes (HFIN)

    5/15/2026House
  15. (H) Moved CSSB 164(L&C) Out of Committee -- Delayed to a 9:00 A.M. --

    5/15/2026House
  16. (H) FINANCE at 08:00 AM ADAMS 519

    5/15/2026House
  17. (H) FN1: (REV)

    5/15/2026House
  18. (H) NR: TOMASZEWSKI, STAPP, BYNUM, MOORE

    5/15/2026House
  19. (H) DP: GALVIN, HANNAN, SCHRAGE, JOSEPHSON, FOSTER

    5/15/2026House
  20. (H) FIN RPT 5DP 4NR

    5/15/2026House
  21. Audio/Video

    5/15/2026House
  22. (H) CROSS SPONSOR(S): SADDLER

    5/4/2026House
  23. (H) FN1: (REV)

    5/4/2026House
  24. (H) NR: COULOMBE

    5/4/2026House
  25. (H) DP: FRIER, CARRICK, HALL, FIELDS

    5/4/2026House

Bill Text

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