Tobacco, alcohol tax approved by Senate, signed by governor
February 16, 2009
Gov. Steve Beshear signed measures Friday that cut university budgets 2 percent, as well as raise the taxes on alcohol and tobacco products.
The bills include two measures to fill the gap left by a $456 million shortfall in the state budget for the rest of the fiscal year.
House Bill 144, which squeaked through the state Senate in a 24-12 vote, will double cigarette taxes to 60 cents a pack. Alcoholic beverages, now taxed only at the wholesale level, will have a 6 percent sales tax. The changes take effect April 1.
House Bill 143, which concerns the budget cuts, passed in a 35-1 vote. The bill includes a 4 percent cut for most state agencies.
Exceptions include higher education, which will take the 2 percent budget cut proposed by the governor. Basic education funding, Medicaid and areas of public safety will be exempt from the cuts.
University spokesman Jimmy Stanton said UK is still figuring out the impact of the cuts on campus.