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Tax increases squeak out of Senate budget committee

February 12, 2009 | | Comments 14

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FRANKFORT — The Senate budget committee narrowly approved a bill Thursday that would raise taxes on cigarettes and alcohol to help address a projected $456 million budget shortfall.

The committee voted 9-7 to send House Bill 144 to the full Senate after hearing from Gov. Steve Beshear, who said he fully supports the bill, and alcohol industry officials, who oppose the measure.

The initial vote was 8-8, which would have killed the proposal. But Sen. Elizabeth Tori, R-Radcliff, changed her vote to keep the bill moving.

The measure would generate about $180 million in a full year, but lawmakers expect to collect only $52 million in the remainder of this fiscal year, which ends June 30. The state’s 6 percent sales tax would be added to packaged wine, liquor and beer while the tax on all tobacco products would double.

The committee also approved a new state budget in a 15-1 vote. House Bill 143 would patch the rest of the budget hole by transferring $219 million from the state’s rainy day fund and other money transferred from other accounts in state government. Gov. Steve Beshear also would have to cut $137 million from state agencies, while another $10 million would come from the judicial and legislative branches.

- Jack Brammer

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Filed Under: FeaturedKY General AssemblyState BudgetState Government

About the Author: John Stamper is the accountability editor for the Lexington Herald-Leader. A native of Monticello, Ky., he has been with the Herald-Leader in a variety of roles since graduating from Western Kentucky University in 2000. Reach him at jstamper@herald-leader.com

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  1. T Stone says:

    Looks like a challenge for David Williams. He can’t let his good buddy Greg down now can he?

  2. The Mailman says:

    Personally, I have no problem increasing the taxes on cigarettes and alcohol,……. as long as the ONLY people who benefit from those increase taxes are the drinkers and smokers! Otherwise, we should all pay OUR SHARE of increased taxes.

  3. Wake Up! says:

    Why do we all have to pay our fair share everytime Frankfort comes calling for more money. Why can’t frankfort do their fair share and eliminate waste and fraud. The governor needs to hire some more cronies.

  4. alvin says:

    What is the government going to do when tobacco is no longer around? They are more addicted to its’ tax revenue than any smoker could ever be to the cigarette. Oh, I see, this bill answers that: tax alcohol. And what next? Condoms, candy, pop and everything else that is “bad” for you.

  5. Clay says:

    See the story about the Warden and state purchases. That is only the tip of the iceberg of unethical behavior. The administrators are aware and maybe part of the culture of corruption in state government. THAT IS WHY WE NEED TO TAX MORE

  6. coach outlet says:

    The committee voted 9-7 to send House Bill 144 to the full Senate after hearing from Gov. Steve Beshear, who said he fully supports the bill, and alcohol industry officials, who oppose the measure.

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  12. polooutlet says:

    The initial vote was 8-8, which would have killed the proposal. But Sen. Elizabeth Tori, R-Radcliff, changed her vote to keep the bill moving.

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