On October 4, 2016, voters approved Ordinance 1789-Amended, establishing a tobacco excise tax on cigarettes and other tobacco products including e-cigarettes and liquid solutions containing nicotine acquired within or brought into the Ketchikan Gateway Borough, effective January 1, 2017. 15% of the proceeds are dedicated to tobacco cessation programs. The remainder is dedicated to the schools.
All products containing tobacco and/or nicotine, or for use with products containing tobacco and/or nicotine, are subject to the tax.
All merchants that import any of these products into the Borough are required to register for a license and start remitting excise tax. The first tax returns are due for the quarter ending March 31, 2017 on April 30, 2017.