(a) For the purposes of Alaska Stat. § 43.50.710 – 43.50.849, the department shall determine the minimum price for which a wholesaler may advertise, offer to sell, or sell cigarettes at wholesale by applying the following formula:

Wholesale Minimum Price = 1.02(M – D + T),

where M = the manufacturer’s list price;

D = trade discounts; and

T = the full face value of all cigarette taxes.

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(b) For the purposes of Alaska Stat. § 43.50.710 – 43.50.849, the department shall determine the minimum price for which a retailer or wholesaler may advertise, offer to sell, or sell cigarettes at retail by multiplying by 1.04 the wholesale minimum price determined under (a) of this section.
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