Governor of Alaska Vetoes Vape Tax

In a letter sent to the President of the Alaskan Senate, Governor Mike Dunleavy explained that he has vetoed Senate Bill 45, which would have added a 35 percent wholesale tax to vaping products in the state of Alaska.

In May of 2022, both houses of Alaska’s state legislature passed Bill 45 to impose a statewide tax on vaping products, and prevent USPS delivery within the state for vape products. The 35% wholesale vape tax that was proposed on this bill would have substantially increased costs on vapes for consumers in the state of Alaska. Such a significant tax could have caused an increase in cigarette smoking rates. Previous studies, like the study performed at Yale University on vape taxes, have shown that there is a direct correlation between the increase in vape taxes and increases in cigarette smoking rates.

Governor Dunleavy has publicly stated that "a tax on the people of Alaska is not something that I could support". While running for office in 2018, he also stated that he was not in favor of raising tax rates in the state of Alaska.

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