College Heights Herald - News
Issue: 10/13/05

State cigarette tax may be increased to offset Medicaid costs
By Kelly Richardson

Kentucky smokers may have to start paying even more money for their nicotine fix before they can get used to the new 30-cent tax on cigarettes.

Gov. Ernie Fletcher mentioned the idea of increasing the cigarette tax Friday at the Gill Heart Institute Cardiovascular Research Day in Lexington.

But some local legislators and business managers said it may be too soon or a bad idea to raise the cigarette tax.

The governor hasn't made an official proposal about another tax increase to the General Assembly, Fletcher's press secretary Jodi Whitaker said. The possibility of raising cigarette taxes is still in the preliminary stages, she said.

Cigarette taxes were increased from 3 cents to 30 cents a pack during the last legislative session, which ended early this year.

Whitaker said the governor has discussed using the money from the increased tax for a tax credit for teachers or to offset money needed for the state Medicaid program.

Whitaker said the governor discussed raising the tax to about 40 cents a pack in the last legislative session.

"It's not like it's a brand new concept, getting it up to that point," she said.

Rep. Jim DeCesare, R-Bowling Green, said he was surprised that Fletcher suggested another cigarette tax increase so soon.

"I don't think it's something we need to be doing right now," he said. "We just did it."

Rep. Rob Wilkey, D-Scottsville, said Fletcher was speaking to a group of doctors when he suggested the tax increase, which may have had an impact on Fletcher's opinion about raising the tax.

"It's probably the kind of thing a group of doctors would like to hear the governor say," he said.

Wilkey said suggesting another cigarette tax increase is premature since there hasn't been enough time to determine the amount of money the tax plan will bring to the state. The original cigarette tax increase was part of a new tax plan approved in the state during the legislative session.

Owensboro junior Matt Cooksey, who is a smoker, said most smokers probably won't notice a 40-cent cigarette tax.

"It's not really going to change the habits of smokers," he said.

Cooksey said he would reconsider purchasing cigarettes if the tax increased to $1.

Kim Phelps, the manager of the Bowling Green cigarette store Smoke Ring, said the tax may not stop smokers from buying cigarettes.

"People are going to buy cigarettes no matter how high they tax, but it's going to make people really mad," Phelps said.

She said the government should find something else to tax. The tax makes it harder on independent businesses who sell cigarettes because competition is hard enough without more expensive cigarettes, she said.

Kentucky's cigarette tax would be more equal with surrounding states if the tax was increased to 40 cents, Whitaker said.

The next legislative session begins in January.



Reach Kelly Richardson at news@wkuherald.com.