JUNEAU, Alaska -- The Alaska Department of Revenue has announced a cigarette sales tax increase of 20 cents per pack, according to an Associated Press report.
The increase goes into effect July 1.
The rate hike is part of a phased-in tax increase that goes back to a 2004 special legislative session, department officials said.
Cigarettes physically in the state on or before June 30 will not be part of the new tax rate.
Those companies that were part of the 1998 Master Settlement Agreement ([image-nocss] MSA) between 46 states and major tobacco companies will see a one-cent- per cigarette increase, taking the tax on each cigarette to 10 cents.
Companies not part of the agreement see a slightly higher hike, just over 11 cents per cigarette, or a tax of $2.25 per pack.
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