Area tobacco stores and convenience stores reported higher than average sales of tobacco products, and say that consumers are trying to stock up on cigarettes before the hike. Some stores said customers were purchasing as many as 10 cartons of cigarettes or more.
Kentucky lawmakers faced a $456 million dollar budget shortfall in the fiscal year ending June 30, and are wanting to recoup with a 6 percent increase on not only tobacco products, but liquor products as well.
But most business owners and managers are skeptical about the increase, saying the tax hike is not a good move, as it may drive away customers and cause them to lose business.
Supporters say the additional revenue generated by the taxes will allow Ky. to avoid cutting budgets for prisons, school districts, and Medicaid, which provides health care to over 700, 000 disabled and poverty-level Kentucky residents.
The bill will raise the 30-cent-per-pack tax on cigarettes to 60 cents and double taxes on smokeless tobacco.
The tax would also apply the increase to beer and liquor, which are usually taxed during wholesale transactions, not in the stores. Experts say the tax increase could ultimately raise the price of a pack of cigarettes as much as 92 cents if tobacco companies exert the full tax on the consumer.
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