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Kentucky tobacco retailers brace for cigarette sales tax increase
wfrv.com ^ | 05/30/2005 | MARK R. CHELLGREN

Posted on 05/30/2005 12:35:27 PM PDT by Extremely Extreme Extremist

Kentucky tobacco retailers brace for cigarette sales tax increase

Monday May 30, 2005

By MARK R. CHELLGREN
Associated Press Writer

FRANKFORT, Ky. (AP) Discount tobacco stores near the Tennessee line are bracing for the worst this week as Kentucky raises its cigarette tax for the first time in 30 years.

From a national low of 3 cents per pack, Kentucky's tax will rise Wednesday to 30 cents per pack above the 20-cent tax in neighboring Tennessee.

``It's going to knock my socks off,'' said Frank Hinton, who employs 22 people at four Discount Tobacco City & Lottery outlets near the border.

While Kentucky's rate will still be low compared to many other states, experts say the increase is dramatic for a state with such a historic reliance on tobacco. Kentucky has the nation's highest adult smoking rate at nearly 31 percent, according to a report last year by the Centers for Disease Control and Prevention.

The state is also the nation's leading producer of burley, a type of tobacco used in cigarettes. Cash receipts from sales of Kentucky-grown tobacco peaked at about $900 million in 1998, but have fallen to roughly half that in recent years.

Gov. Ernie Fletcher has called Wednesday a ``historic'' day for Kentucky and one penny of the 27-cent increase will be set aside for cancer research.

David Tandy of the American Cancer Society called the increase ``a monumental leap for a state like Kentucky.''

But some Kentucky lawmakers who have advocated big tobacco taxes for years are fearful that the state has aimed too low. Only five states will have lower cigarette tax rates led by North Carolina at 5 cents per pack.

``I wish it would have been higher,'' said Rep. Jon Draud, R-Edgewood. ``Your goal is not to raise a lot of revenue, it's to get people to stop smoking.''

Kentucky retailers were expecting a rush in cigarette sales prior to Wednesday. Billy Grantz, president of Cox's Smoker Outlets and its 19 stores around the Louisville area, has already seen a bump in sales.

Still, he worries about what the tax will do to his business and his 120 employees.

``I know it's going to hit I just hope it's not too bad,'' Grantz said. ``I've warned all of my employees, if this hurts too bad, we might have to make some cuts.''


TOPICS: Business/Economy; Government
KEYWORDS: antismokingzealots; cigarettes; kentucky; pufflist; salestax; smuggling; taxes
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1 posted on 05/30/2005 12:35:29 PM PDT by Extremely Extreme Extremist
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To: Extremely Extreme Extremist
``I wish it would have been higher,'' said Rep. Jon Draud, R-Edgewood. ``Your goal is not to raise a lot of revenue, it's to get people to stop smoking.''

Another RINO who doesn't understand unintended consequences.

2 posted on 05/30/2005 12:37:08 PM PDT by Extremely Extreme Extremist (Harmful Or Fatal If Swallowed)
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To: Extremely Extreme Extremist

"From a national low of 3 cents per pack, Kentucky's tax will rise Wednesday to 30 cents per pack above the 20-cent tax in neighboring Tennessee."

Does that mean the tax will be 53 cents per pack?

What the hell does the 20 cent tax in Tennesee have to do with Kentucky raising their taxes on tobacco?

Is this just a lame attempt to minimize the 'shock' factor?


3 posted on 05/30/2005 12:39:48 PM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: Extremely Extreme Extremist

"``Your goal is not to raise a lot of revenue, it's to get people to stop smoking.''"

Oh Bullcrap!

It is TOTALLY used to raise a lot of revenue.

RINO's are no better than socialists.


4 posted on 05/30/2005 12:41:21 PM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: Extremely Extreme Extremist

WA state is another one that increased its so called "SIN" taxes courtesy of demoncRAT gov Fraudoire & her minions in the state legislature.


5 posted on 05/30/2005 12:45:11 PM PDT by lilylangtree (Veni, Vidi, Vici)
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To: Extremely Extreme Extremist
They need to start tarring and feathering these politicians. There needs to be some fear installed that makes people's blood run cold whenever they try to raise taxes on anything.
6 posted on 05/30/2005 12:47:31 PM PDT by Caipirabob (Democrats.. Socialists..Commies..Traitors...Who can tell the difference?)
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To: lilylangtree
Good for Tennessee!

Any bets that revenues in Tennessee will be higher than Kentucky next year based simply on volume?
Lots of states are run by total doofuses who have no clue about what supply and demand is all about.

As to the magnanimous statement about caring for people's health, not revenues, I ask the simple question:

Why don't you just ban tobaco, slimeball?

7 posted on 05/30/2005 12:51:03 PM PDT by Publius6961 (The most abundant things in the universe are hydrogen, ignorance and stupidity.)
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To: Caipirabob
"There needs to be some fear installed that makes people's blood run cold whenever they try to raise taxes on anything."

Absolutely! Perhaps an invite to a cooling off party would be in order.

8 posted on 05/30/2005 1:21:08 PM PDT by G.Mason ( It's people like you, that make people like me, people like you!)
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To: Extremely Extreme Extremist

**``I wish it would have been higher,'' said Rep. Jon Draud, R-Edgewood. ``Your goal is not to raise a lot of revenue, it's to get people to stop smoking.''***

Is he really that stupid or does he think the public is stupid enough to believe that?

If you want to stop smoking have the balls to introduce a law making cigarette smoking illegal. Stop hiding behind taxes.


9 posted on 05/30/2005 1:44:25 PM PDT by sgtbono2002
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To: Bigh4u2
For reasons I don't understand, HTML ignores certain hyphens or dashes. I think the original sentence reads something like the following:

From a national low of 3 cents per pack, Kentucky's tax will rise Wednesday to 30 cents per pack -- above the 20-cent tax in neighboring Tennessee.

I hope this helps, even if it does not answer all the questions you raised.

10 posted on 05/30/2005 1:51:32 PM PDT by aposiopetic
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To: Extremely Extreme Extremist

This is just more political correctness!Let's tax that damn 1st amendment.If you want to make some real money,TAX PORNOGRAPHY!!


11 posted on 05/30/2005 1:52:09 PM PDT by INSENSITIVE GUY
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To: Extremely Extreme Extremist
"Gov. Ernie Fletcher has called Wednesday a ``historic'' day for Kentucky and one penny of the 27-cent increase will be set aside for cancer research.

David Tandy of the American Cancer Society called the increase ``a monumental leap for a state like Kentucky.''

He has high expectations doesn't he? Psssst....David, you're getting F'ed out of the other 26 cents. How does that make you feel? Like the rest of us?

12 posted on 05/30/2005 1:52:49 PM PDT by Normal4me
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To: Extremely Extreme Extremist
Gov. Ernie Fletcher [said] one penny of the 27-cent increase will be set aside for cancer research.

David Tandy of the American Cancer Society called the increase "a monumental leap for a state like Kentucky."

Bwaahaaaaaaaa

13 posted on 05/30/2005 1:58:01 PM PDT by DumpsterDiver
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To: Extremely Extreme Extremist
They better be ready for the deluge- Ohio succumbed to pressure from wine drinkers and backed off alcohol tax and slapped a 70-cent/pack tax on cigarettes. Enough of this chickensh*t politics!
14 posted on 05/30/2005 1:59:31 PM PDT by fat city (Julius Rosenberg's soviet code name was "Liberal")
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To: Normal4me

We were on the same wave-length. (see post 13)


15 posted on 05/30/2005 2:00:16 PM PDT by DumpsterDiver
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To: Extremely Extreme Extremist
Since Kentucky's tax is still low by national standards most residents will continue to buy cigarettes locally.

This means that the state is passing an extremely regressive tax since blue collar workers and the poor smoke a lot more than white collar workers and the rich.

If one of these politicians starts whining about "they care about the little people" they are lying big time.
16 posted on 05/30/2005 2:05:27 PM PDT by cgbg (When do I wake up from this socialist nightmare?)
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To: DumpsterDiver
I posted a link months ago that showed my state, Florida, had collected 186 Million in tobacco taxes awarded by the big tobacco lawsuit. They spent only 1% of it on smoker education. No one knows where the other 99% went.

Everything is relative. Charge me $10 for a pack of cigs and I don't spend additional money in places like restaurants or at movie theaters or theme parks, etc. I'll play the game and laugh my ass of when the government pays for their stupid decisions.

17 posted on 05/30/2005 2:18:33 PM PDT by Normal4me
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To: DumpsterDiver
I posted a link months ago that showed my state, Florida, had collected 186 Million in tobacco taxes awarded by the big tobacco lawsuit. They spent only 1% of it on smoker education. No one knows where the other 99% went.

Everything is relative. Charge me $10 for a pack of cigs and I don't spend additional money in places like restaurants or at movie theaters or theme parks, etc. I'll play the game and laugh my ass of when the government pays for their stupid decisions.

18 posted on 05/30/2005 2:19:20 PM PDT by Normal4me
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To: Extremely Extreme Extremist; SheLion; Gabz

Oh God,not Kentucky!

Our excessive tax in Massachusetts is to be expected ($1.51 per pack)but I never expected it in Kentucky.


19 posted on 05/30/2005 4:52:11 PM PDT by Mears (Keep the government out of my face!)
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To: Extremely Extreme Extremist

"``I wish it would have been higher,'' said Rep. Jon Draud, R-Edgewood. ``Your goal is not to raise a lot of revenue, it's to get people to stop smoking"




BULLS*** !!!!!!!!!!!!!!!!


20 posted on 05/30/2005 4:53:45 PM PDT by Mears (Keep the government out of my face!)
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