1. ALASKA ALCOHOL TAX DAVID RACKI, NIKKI POLZIN, KORTNEE ROBINSON

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

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

4. HISTORY 1933 - First tax on beer and wine at 5 cents per gallon 1937 - Tax on liquor at 50 cents per gallon; wine increased to 15 cents per gallon 1937-1983 - Alaska’s alcohol tax increased in accordance with other state’s changing rates 2002 - Creation of the Alcohol and Drug Abuse Treatment and Prevention Fund Department of Revenue, 2014

5. CURRENT TAX RATES Effective October 1, 2002

6. REVENUE DISTRIBUTION

7. 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

8. CASE STUDY Effects of Alcohol Tax Increases on Alcohol-Related Disease Mortality in Alaska: Time- Series Analysis from 1976-2004 1983 2002

9. ATTEMPTS TO PASS CITY-WIDE TAX AO-2015-10 Introduced by Dick Traini and Ernie Hall 5.5% on package and retail store sales 3 supported, 17 opposed, 4 neutral

10. POPULATION FACTORS Tourists College Students Military Veterans Native Population

11. ECONOMIC COSTS

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

13. CONCLUSION Political Factors 39 million (19 million) 500 million

14. 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