New Alcohol/Cigarette Tax Signed Into Law

Kentucky Governor Steve Beshear signed a bill Friday afternoon that imposes higher taxes on cigarettes and alcohol sold in the state.

The Senate narrowly passed the measure Friday morning by a vote of 24-12.

The measure increases the tax on cigarettes from 30 cents to 60 cents a pack, generating about $81.5 million a year, and imposes a 6 percent retail sales tax on all alcohol products, generating an additional $97.9 million a year.

The plan also transfers $219 million from the state's rainy day fund to the general fund.

Kentucky is facing a $456.1 million shortfall in the fiscal year ending June 30.

Lawmakers say raising the taxes combined with shifting other state money should offset the need for deeper cuts in government spending.

The new taxes will go into effect on April 1st.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by rowdy on Mar 3, 2010 at 09:46 PM
    I HOPE THE NEXT TIME OUR WIMPY GOVERNOR HAS A DRINK THAT SOMEONE HAS JUST DEPOSITED ONE OF THOSE $5 CIGARETTES IN IT. SOMETHING NEEDS TO WAKE HIM UP.
  • by mick Location: NKY on Oct 27, 2009 at 02:27 PM
    Tax,tax, tax in whose pockets,don`t smoke and don`t drink tax on gas,cigarette`s,alcohol,what else Mr.Beshear ? Maybe a tax for rain or snow or sunshine, someone`s getting fat and we all know where Frankfort is,I guess Mr.Beshear doesn`t drink or smoke or have any vice`s..............maybe he can`t be trusted ? Afterall a person so perfect and God fearing we all need to look closer at this man and I mean real close.
  • by Jacqueline Location: Ky. on Apr 1, 2009 at 07:49 PM
    Gov. breshear you need to repeal this stupid cigarette tax hike. NOW What do you think you are doing? i drove to jellico today to get cheaper cig. are ky residents gonna have to drive to ohio or georgia ? i appolagize for voting for you,
  • by DEBBIE Location: KY. on Mar 13, 2009 at 04:12 PM
    GLAD TO KNOW US SMOKERS WILL FIX THE STATE BUDGET FOR MR. STEVE BESHEAR. THOUGHT HE WOULD HAVE BEEN A LITTLE MORE FAIR ABOUT THIS? MAYBE WE SHOULDN"T VOTE FOR HIM NEXT TERM.
  • by Ginger Location: Denver on Mar 13, 2009 at 12:27 PM
    Walmart stores are already collecting the increased tax on Cigarette's and it only March 13, 2009. whats up with that?
  • by Kelly Location: Lexington on Feb 18, 2009 at 02:34 PM
    I love how smokers are complaining about the tax and then say it is for nothing. What about the 4% state budgets cuts that would've happened if not for the tax hike. I guess kids couldn't get a good education (I say good lightly being that this is KY).
  • by clark on Feb 17, 2009 at 06:45 PM
    i wonder if the moron up in Frankfort, next year will be well got to raise taxes on cig and alcohol again. if they do where the [edited] is our money going
  • by Karen on Feb 17, 2009 at 09:32 AM
    If you are unhappy then move to another state where these taxes are a lot higher.
  • by William on Feb 17, 2009 at 04:24 AM
    I love it but would have loved it more if the cig tax had been at least $1.00
  • by Barry Location: Floyd County on Feb 16, 2009 at 08:23 PM
    Instead of taxing cigarettes and alcohol, Ky should pass a twinkie and pop tax. These contribute more to obesity and diabetes, which cause more health problems than tobacco products and alcohol. It would also bring in much more money to offset medicaid spending

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