Add Kentucky to the list of states with legislatures that will have to deal with a proposed tobacco tax increase, as three state representatives have introduced a bill that would raise the tax on other tobacco products from 15 to 18 percent of the wholesale price.
Reps. David Watkins, D-11; Mary Lou Marzian, D-34; and Tom Burch, D-30, have introduced HB 247, which seeks to increase a number of aspects of the state’s tobacco tax structure. Premium cigars and other tobacco products (OTP) would see an increase from 15 to 18 percent, meaning that a cigar with an MSRP of $9.50 and that currently costs $10.93 would jump to $11.21.
Additionally, a floor tax of 5 percent on the actual amount paid would be levied on all premium cigars in stock as of July 31, 2016.
The bill also seeks an increase of 50 cents per pack on cigarettes, which would raise it to $1.06, as well as increases in chewing tobacco, snuff and other tobacco products. A floor tax would also be levied on cigarettes and other tobacco products.
If approved, the tax increase would go into effect on Aug. 1, 2016. Following its introduction, it was referred to the House Appropriations & Revenue Committee.