WKYT | Lexington, Kentucky | News

Governor's tax reform plan includes cigarette tax increase

FRANKFORT, Ky. (AP) Gov. Steve Beshear has proposed sweeping changes to Kentucky's tax code that include lowering tax rates for individuals and businesses and expanding the sales tax to more services.

The state's cigarette tax would increase to $1 a pack under the plan.

Beshear said Tuesday his package includes 22 changes to the tax system. He calls it a "beginning point" in discussions with lawmakers to modernize the tax system to make Kentucky more competitive.

The Democratic governor proposes applying the state sales tax to labor charged to fix such personal property as automobiles and computers.

The sales tax also would apply to admissions to fitness centers and golf courses under the plan.

Beshear says his plan would increase state General Fund revenues by nearly $210 million per year once fully implemented.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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