Alaska Legislature passes bill to tax vapes, raise legal tobacco purchase age to 21

Mari Kanagy, Anchorage Daily News, Alaska on May 26, 2026

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JUNEAU, Alaska — The Alaska Legislature passed a bill to impose a new state tax on e-cigarettes and vapes and formally raise Alaska's legal smoking age from 19 to 21. Along with the deterrence measures, the bill also includes a provision to legalize cigar lounges.

Senate Bill 24 passed the House 24-16 and cleared the Senate on a 15-5 concurrence vote on May 20, the final day of the legislative session.

If it becomes law, the new taxes would take effect Jan. 1, 2028.

"It brings some parity to the way we treat vaping and cigarettes, both in terms of the way we tax it, and the way we say to children, 'You can't use that.' And that's because vapes are dangerous just as tobacco is," said Rep. Andy Josephson, an Anchorage Democrat and a sponsor of the bill, before the May 19 House floor vote.

In 2019, a federal law raised the legal age to purchase tobacco and nicotine products to 21. Updating Alaska's state statute to match federal law would make enforcement easier and clearer for retailers and regulators, said Senate President Gary Stevens, a longtime advocate for the bill.

Data from the state Division of Public Health reported 17% of Alaska high school students used e-cigarettes or vapes in 2023. This is down from the 26% of students who reported using these products in the same Alaska Youth Risk Behavior Survey conducted in 2019.

Stevens, a Kodiak Republican, has sponsored versions of the same bill for years. Gov. Mike Dunleavy vetoed a similar measure passed in 2022, objecting to the proposed 35% wholesale tax rate on electronic smoking products. This year's bill instead sets the tax at 25% of the retail sale price.

Jeff Turner, a spokesperson for the governor, declined to comment on whether Dunleavy plans to sign the bill, veto it or allow it to become law without his signature.

The state Department of Revenue estimates the new tax would generate somewhere between $1.36 million and $3 million in its first year.

The state currently taxes cigarettes at $2 per pack and other tobacco products at 75% of wholesale value, on top of other taxes put in place by individual municipalities.

But electronic smoking products are not explicitly included in existing tobacco tax statutes, which lists specific products by name, and are therefore not taxed.

The bill would also establish a $100 fine for minors found possessing nicotine products. Lawmakers reduced the penalty for underage possession from the $300 included in an earlier version of the bill.

That amount was one of several changes to the bill added in a lengthy House amendment process.

Rep. Will Stapp, a Fairbanks Republican and military veteran, proposed an unsuccessful amendment to exempt active-duty service members ages 19 and 20 from the underage possession fine. During a Finance Committee hearing earlier this month, Stapp argued it would be hypocritical to penalize young military members for smoking while also preparing them for combat.

"You know what's bad for your health, co-chair? War. That's bad for your health," Stapp said, addressing House Finance Co-Chair Neal Foster, a Nome Democrat.

Lawmakers also adopted an amendment to legalize cigar lounges, allowing on-site cigar smoking at those businesses. That amendment was proposed by Rep. Kevin McCabe, a Big Lake Republican.

Josephson opposed the addition, arguing it conflicted with the bill's broader public health goals. The amendment ultimately passed 21-19, with Democratic Reps. Robyn Frier of Utqiaġvik and Nellie Jimmie of Toksook Bay and Republican Rep. Chuck Kopp of Anchorage joining the Republican minority caucus in support.

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