AlaskaSB 2434th Legislature - Second Session (2026)SenateWALLET

TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX

Sponsored By: Gary Stevens (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 4 costs, 2 mixed.

Safer vape products and youth marketing limits

Starting January 1, 2027, e‑cigs sold in Alaska must meet safety rules. Nicotine liquid may not exceed 70 mg/mL, devices must resist breakage and leaks, be child‑ and tamper‑proof, and list all ingredients and nicotine content. Products may not include added vitamins or additives that imply health benefits, such as caffeine, taurine, vitamin E acetate, stimulants, or colorants. Beginning January 1, 2027, retailers may not distribute e‑cigs packaged so they are not clearly recognizable. Beginning January 1, 2026, marketing that is likely to promote use by people under 21 is an unfair or deceptive practice. As of January 1, 2026, chemicals made to act like nicotine are treated as nicotine.

More money for tobacco prevention

Beginning January 1, 2026, 20% of the state's annual Philip Morris settlement revenue goes into a Tobacco Use Education and Cessation Fund. Starting January 1, 2027, money from the new e‑cig tax also goes into this fund. The government uses the fund for education, quitting help, and school prevention and detection efforts.

25% tax on closed e‑cigs

Beginning January 1, 2027, the state charges a 25% tax on the retail price of closed electronic smoking and vapor products. In-state retailers must collect and send the tax. Out-of-state sellers must collect if they have more than 200 Alaska transactions in the current or prior year.

No sales to under‑21; seller fines

Beginning January 1, 2026, it is illegal to negligently sell, give, or vend tobacco, e‑cig, or nicotine products to anyone under 21. Allowing a person under 19 to sell these products under your license is also illegal. A conviction for selling or giving e‑cig or nicotine products to someone under 21 carries a fine of at least $300. The law also repeals a subsection in the prior sales statute on January 1, 2026.

Tighter shipping and delivery checks

Beginning January 1, 2026, unlicensed people may not ship tobacco into Alaska, except to licensed businesses, bonded warehouses, or certain federal or tribal entities. Shipments to individuals are limited to cigar or pipe tobacco for personal use and require third‑party age verification at purchase. Carriers must verify the recipient is 21 before delivery or get a sworn affidavit; for home deliveries, failing to verify creates a presumption of a violation. Shipping tobacco in violation is a class A misdemeanor; civil fines can reach $5,000 per shipment, and violators owe unpaid taxes. Starting January 1, 2027, similar rules apply to shipping e‑cig products, and licensed shippers may ship only to authorized recipients or to verified 21+ buyers after tax is paid.

Vape retailers: license, signs, suspensions

Beginning January 1, 2027, vape retailers must hold a state license that costs $50 per year. The department can refuse, suspend, revoke, or not renew for false information, not being in good standing, or unpaid taxes. Starting January 1, 2026, stores with the required endorsement must post a clear 8.5x11 inch warning sign about the 21+ sales rule. For under‑21 sales violations, the department can suspend endorsements, but may reduce a suspension if the store had written policies, training, age checks, discipline, and monitoring. If a license is suspended or revoked, the business must stop selling during that period.

Who is exempt from vape tax

Starting January 1, 2027, some closed e‑cig and vapor products are not taxed. Exempt sales include military service facilities and FDA‑approved medical or cessation products. Items the state cannot tax under federal law are exempt. Certain marijuana or hemp devices and products without nicotine are also exempt.

Where vending machines and 21+ sales apply

Starting January 1, 2026, vending machines for tobacco or e‑cigs are allowed only in narrow settings. They are allowed on certain licensed premises if kept as far from the main entrance as practicable and directly supervised during public hours. They are also allowed in employee‑only areas with a posted warning sign (11x14 inches for tobacco; 11x8.5 inches for e‑cigs). Stores that bar under‑21 entry may sell to verified 21+ customers, and online sellers may sell to verified 21+ buyers.

Monthly vape tax returns and records

Starting January 1, 2027, vape retailers must file a monthly return by the last day of each month. The return lists units or sales amounts, selling prices, and tax due. Retailers must keep complete purchase and sales records for three years and provide them on demand.

Under‑21 possession ban, fines, defenses

Beginning January 1, 2026, people under 21 may not knowingly possess tobacco, e‑cigs, or nicotine products. A violation can bring a fine up to $300, or, at the person's request, a referral to a tobacco education program. There is a defense for FDA‑approved cessation or medical products, prescriptions, items given by a parent or guardian, products from a state cessation program, or pharmacist‑provided products to people 18 or older. Youth cases go to district court like adult cases; a parent or guardian must attend. The court sets forfeitable bail for 18‑ to 20‑year‑olds; under‑18s must appear in court. Employees age 19 or 20 may possess these items as part of their job for a licensed seller.

Sponsors & Cosponsors

Sponsor

  • Gary Stevens

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. (H) FINANCE at 06:00 PM ADAMS 519

    5/15/2026House
  2. (H) CROSS SPONSOR(S): GALVIN

    5/14/2026House
  3. (H) Heard & Held -- Recessed to a Call of the Chair --

    5/11/2026House
  4. (H) FINANCE at 01:30 PM ADAMS 519

    5/11/2026House
  5. Audio/Video

    5/11/2026House
  6. (H) Heard & Held -- Please Note Time Change --

    5/7/2026House
  7. (H) FINANCE at 09:00 AM ADAMS 519

    5/7/2026House
  8. Audio/Video

    5/7/2026House
  9. (H) Scheduled but Not Heard

    5/5/2026House
  10. (H) FINANCE at 01:30 PM ADAMS 519

    5/5/2026House
  11. (H) Minutes (HFIN)

    5/18/2025House
  12. (H) <Bill Hearing Canceled> -- Recessed to a Call of the Chair --

    5/18/2025House
  13. (H) FINANCE at 12:00 PM ADAMS 519

    5/18/2025House
  14. (H) REFERRED TO FINANCE

    5/13/2025House
  15. (H) FIN

    5/13/2025House
  16. (H) READ THE FIRST TIME - REFERRALS

    5/13/2025House
  17. (S) VERSION: CSSB 24(FIN)

    5/12/2025Senate
  18. (S) TRANSMITTED TO (H)

    5/12/2025Senate
  19. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/12/2025Senate
  20. (S) PASSED Y15 N5

    5/12/2025Senate
  21. (S) READ THE THIRD TIME CSSB 24(FIN)

    5/12/2025Senate
  22. (S) ADVANCED TO THIRD READING 5/12 CAL

    5/9/2025Senate
  23. (S) FIN CS ADOPTED UC

    5/9/2025Senate
  24. (S) READ THE SECOND TIME

    5/9/2025Senate
  25. (S) RULES TO CALENDAR 5/9/2025

    5/9/2025Senate

Bill Text

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