Among the bills the Kentucky House of Representatives will consider this session is House Bill 132, a 213-page document that proposes a number of tax increases to tobacco products of all kinds, including an increase that could result in a nearly 300% increase of the cigar tax.
The bill calls for an increase in the tax rate from 15% of the wholesale price to 40%, an increase that would also apply to smokeless tobacco products, smoking tobacco, chewing tobacco and any other kind of prepared tobacco intended for chewing or smoking, except cigarettes. The bill seeks a $1 per pack increase, from $0.56 to $1.56, on cigarettes. Snuff and chewing tobacco are also looking at increases of 168%.
There would also be increases in the floor stock taxes on all tobacco products, including an increase on tobacco products such as cigars from 7.5% to 25% of their price.
The bill was introduced on Jan. 6 and referred to the House Appropriations & Revenue Committee on Jan. 8.