Kansas Mulls Hiking Cigarette Tax

Financial Woes May Force Kansas to Increase Cigarette Tax

FRANKFORT, Ky. (AP) -- One of the nation's leading tobacco-producing states may increase taxes on cigarettes for the second time in three years to offset a revenue shortfall that's causing widespread budget cuts.

State Rep. David Watkins, D-Henderson, said he plans to introduce legislation Friday that would raise Kentucky's tax on cigarettes from 30 cents to $1 a pack.

The Legislative Research Commission estimates that the measure could generate an additional $205 million in tax revenues. The state currently receives $165 million a year from cigarette sales.

Watkins, a physician, admits he has an ulterior motive for pushing for the tax hike. He hopes the higher price of cigarettes will cause people to stop smoking, especially teens.

Anti-tobacco groups are urging lawmakers to support the tax hike as a way to help offset a shortfall of nearly $900 million over the next two years that has forced cuts throughout state government.

"Raising the price of cigarettes is the single most effective way to prevent smoking, especially among teens," said Tonya Chang, a lobbyist for the American Heart Association. "Dr. Watkins' bill would have a major public health benefit."

In a state where more than 25 percent of residents regularly light up, the proposal has an army of critics.

At Bo's Smoke Shop in Lawrenceburg, manager D.J. Webb said lawmakers would create a financial hardship on most smokers by raising the tax.

"People like me who make under six digits a year can't afford it," Webb said. "But I don't care how poor you are, for some reason, you find enough change to buy that next pack of cigarettes."

The most popular brand, Marlboro, sells for $2.99 a pack at Webb's tobacco store. The proposed increase would push the price to $3.69 a pack, and well beyond $30 for a carton.

The cheapest generic cigarettes, now $2.05 a pack, would go for $2.75 cents if the increase is approved.

"I'm very against this tax increase," Webb said. "People aren't going to quit smoking. If they can't buy them, they're going to steal them. All they're doing is creating another criminal and another angry person."

Until 2005, Kentucky's cigarette tax was 3 cents a pack, the lowest in the nation. With the state's finances in shambles, Watkins believes the time is right for another hike.

"I think it has a good chance," he said. "But having said that, whether I will get this large an increase, I don't know. I'm going to push for as large a one as I can, because the larger it is the better the results will be."

As of Thursday, 13 House lawmakers had signed on as co-sponsors of Watkins' measure, including budget committee chairman Harry Moberly, D-Richmond. Even so, Watkins said he's not certain the increase has enough support in the House to pass.

And if it does get through the House, Senate President David William's said the proposal may get no farther.

"I see very little support for any tax increases," he said.