ALASKA ALCOHOL TAX DAVID RACKI, NIKKI POLZIN, KORTNEE ROBINSON

INTRODUCTION Is a municipal tax on the sale of alcohol an effective solution for managing the inebriation problem?

INTRODUCTION History Current tax rates Current revenue distribution Previous attempts to pass Case studies Economic cost Alternatives Conclusion Recommendations

HISTORY First tax on beer and wine at 5 cents per gallon Tax on liquor at 50 cents per gallon; wine increased to 15 cents per gallon Alaska’s alcohol tax increased in accordance with other state’s changing rates Creation of the Alcohol and Drug Abuse Treatment and Prevention Fund Department of Revenue, 2014

CURRENT TAX RATES Effective October 1, 2002

REVENUE DISTRIBUTION

O THER STATES' DISTRIBUTION PATTERNS Montana –$32 Million 80% General Fund 20% Department of Health and Human Services Pennsylvania –$100 Million 20% State Police 2% Drug/Alcohol Treatment Programs Iowa –$100 Million 80% General Fund 14% Treasury 1% Economic Development 1% Alcohol/Drug Abuse Prevention Main –$10 Million All funds distributed to Office of Substance Abuse

CASE STUDY Effects of Alcohol Tax Increases on Alcohol-Related Disease Mortality in Alaska: Time- Series Analysis from

ATTEMPTS TO PASS CITY-WIDE TAX AO Introduced by Dick Traini and Ernie Hall 5.5% on package and retail store sales 3 supported, 17 opposed, 4 neutral

POPULATION FACTORS Tourists College Students Military Veterans Native Population

ECONOMIC COSTS

ALTERNATIVES 13 Effective Practices General Alcohol Use Impaired Drivers Under-Age Drinkers

CONCLUSION Political Factors 39 million (19 million) 500 million

RECOMMENDATIONS Develop a separate established fund in which the collection would be accumulated. Provide rationale and direct where the funds would be directed. Including provisions that the proceeds could only be used for selected purposes. Engage in partnership with Inpatient and Outpatient Services to develop a strategic plan to encourage long term coping mechanisms for those with alcohol dependency issues. Compile present financial and societal impact reports, and present them to voters well in advance of any vote on the proposed tax