Kentucky Commission Makes Tax Recommendations, Including Cigarette Tax reports Cigarette Affiliate

Gov's commission is tasked with finding fair and lucrative tax recommendations
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California, CA (prHWY.com) November 29, 2012 - San Francisco, CA- The tax on cigarettes in Kentucky may rise as $1 per pack, as the city may pursue a sales tax. The consideration follows

the recommendations approved by Governor Steve Besher's tax reform commission.

The commission recommended a handful of actions that they admitted may not be popular with legislators. They noted that more work would be

required in order to figure out the state's income tax scenario.

The state is looking to raise around $100 million for public schools and a 1% tax on cigarette sales could help them reach the goal.

There is currently no sales tax on residential utility bills, but residents can be taxed as high as 3% on their bills to fund local skills.

Businesses can have the same tax and amount levied upon them as well. Businesses already pay 6% on utilities to the state.

The commission recommended removing voter recall provision following a school board proposes to set annual property tax rates at a level over

4% increase in revenue.

"We have to be careful. A lot of the tax increases recommended today were regressive," said commission member Jason Bailey, director of the

Kentucky Center for Economic Policy. "The utility tax, cigarette tax, and local option sales tax are additional burdens on low- and middle-

income people."

There has not been a date set for the meeting regarding the income tax and other matters. Lt. Governor Jerry Abramson stated that he would set

a date in early December.

Abramson made it clear that all recommendation created by the commission are tentative until the group approves its report.

The commission was created in February by Beshear. With the creation, the commission was tasked with finding recommendations to push forward

regarding making the tax code produce revenue to adequate levels in order to fund education. Beshear said he wishes to see recommendations

that make the system more fair, simple, and conducive to development of the economic variety.

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