AK HB304

Requires taxpayers to submit tax returns and reports to the Department of Revenue electronically, with a penalty of $25 or 1% of total tax (whichever is greater) for non-compliance unless exempted or showing reasonable cause.

Establishes a 2-year exemption period for taxpayers who demonstrate they lack the capability to submit returns electronically, with the ability to reapply after the exemption expires.

Increases the cigarette excise tax from variable rates (42-62 mills) to a flat rate of 112 mills per cigarette.

Raises the excise tax rate on tobacco products and newly-included electronic smoking products from 75% to 100% of wholesale price.

Adds a comprehensive definition of "electronic smoking product" covering components, solutions, and vapor products of electronic cigarettes and similar devices designed to deliver nicotine or other substances, with exceptions for FDA-approved drugs and smoking cessation products.