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Tobacco

Kentucky Approves Tobacco Tax Increase

Legislators override governor's veto to pass 50-cent-per-pack levy

FRANKFORT, Ky. -- In a tight vote in the Kentucky Senate, a proposed 50-cent-per-pack cigarette tax increase and a floor tax became law after a contentious back-and-forth between legislators and Gov. Matt Bevin, according to NATO.

Both the Senate and Kentucky’s House of Representatives originally adopted the measure on April 2. Then on April 9, Bevin vetoed it. Four days later, the House voted 57 to 40 to override the veto, with the Senate subsequently approving the override by a vote of 20-18.

With such a close vote, Lakeville, Minn.-based tobacco group NATO said the Senate would have defeated the bill if just one approving Senator had voted against the proposal.

The 50-cent-per-pack increase is effective July 1, 2018, while the floor tax (a one-time tax levied to bring collected revenue up to the level of the new tax rate) will be calculated on inventory as of 11:59 p.m. on June 30, 2018, NATO said.

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