Kentucky alcohol, tobacco tax bill passed

"Kentucky alcohol, tobacco tax bill passed

from Business Courier of Cincinnati

The Kentucky Senate narrowly passed two bills aimed at addressing a state budget deficit of $456 million by cutting spending and raising taxes on alcohol and tobacco products, and the measures have been signed by Gov. Steve Beshear.
According to a news release from the state’s Legislative Research Commission, the House Bill 144 and House Bill 143 passed by margins of 24-12 and 35-1, respectively.
HB 144, the tax portion of the spending plan, doubles the state tax on tobacco products to 60 cents per pack from 30 cents. It also doubles current taxes on chewing tobacco, snuff and other tobacco products. The bill also extends the state’s 6 percent sales tax to retail purchases of package beer, wine and liquor, which had been exempt from sales taxes.
HB 143 included spending cuts, including a 4 percent budget cuts in most state agencies.
“People on both sides of this issue understand the dire circumstances we’re in,” Senate President David Williams, R-Burkesville, said in the release, adding that the measures are a “stopgap.”
Sen. Charlie Borders, R-Russell, added in the release that “cuts of a half billion dollars have already been made, with more to come. The road is not going to get better any time soon.”
Both bills previously were passed by the House and will take effect April 1, the release said.
“I want to applaud and thank my colleagues — President Williams, Speaker Stumbo, Sen. Ed Worley, Rep. Jeff Hoover and many others — for their leadership and commitment to this state,” Beshear said in a separate release. “We don’t agree on everything. But we share certain values and priorities. With compromise from all parties we have been able to put together a package that solves this immediate problem while preserving our ability to react to future challenges.”"