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March 2008

News & Media

Kentucky Governor Endorses Cigarette Tax Hike 
March 10, 2008 

FRANKFORT, Ky. – On Thursday, Kentucky Gov. Steve Beshear changed his mind on raising the state’s cigarette tax and proposed increasing it by 70 cents per pack to fund the state budget, the Louisville Courier-Journal reports.

Last year while campaigning for governor, Beshear opposed higher taxes, and has often said that residents pay enough taxes. “I have said all along that taxes are my last resort. Well, we have arrived at that stage,” Beshear said.

“If we are to assure that students and their families aren’t victimized by double-digit tuition increases, if we want to continue funding K through 12 at an acceptable level and provide essential health care and social services for our people, additional recurring revenue must be created from some source,” said Beshear.

Currently, the state's cigarette excise tax is 30 cents a pack. The governor said he is advocating the 70-cent hike because a constitutional amendment to legalize casino gambling, which would generate revenue, seems unlikely to pass.

However, the Republican-controlled Senate has indicated that they are not in favor of raising any taxes, including one on cigarettes.