Growers weigh in on new tax
Published 12:00 am Wednesday, January 1, 1997
Kentucky tobacco growers are joining in the discussion about a possible cigarette tax increase promoted by health advocates as a way to curb teen smoking and possibly raise revenue for a floundering budget. Now just 3 cents a carton the same as its been for decades a small tax increase might be in order, though legislators arent too keen on it. I dont think an increase is going to stop teens from smoking, said Sammy Rippy, who leases his Warren County tobacco acreage to others. We probably could stand an increase, but not anything like the 40-something cents that is being talked about. Kentucky ACTION (Alliance to Control Tobacco in Our Neighborhoods) this week proposed a 75 cent increase per pack. Across the country, raising the cigarette excise tax has proven to be a win-win for both public health and the state fiscal concerns, by decreasing youth smoking rates and by providing revenue for needed programs, said Julie Brackete, director of Advocacy for the American Heart Association and chairman for Kentucky Health Investment for Kids Coalition two of the 15 groups supporting a tax increase. Figures from KHIK suggest that a 75 cent increase would save 25,000 lives and generate more than $300 million in revenue, according to a news release from the organization. But Odis Blanton, former tobacco floor sales supervisor for Warren County, said an additional tax would ultimately increase farmers burdens. It seems to me like farmers are having a hard enough time, much less having to deal with the tax, Blanton said. Its ridiculous knocking tobacco like they do. It probably wont stop anybody from smoking. People will just have a worse time affording cigarettes. Rippy agrees. Cigarettes shouldnt be paying for all the problems states have, he said. Harold Prather of Lexington, a member of the Burley Tobacco Growers Association board, said his group has joined the discussions on such a tax because of the possibility it will be raised by lawmakers during the 2003 General Assembly. The general feeling is that a cigarette tax is coming, Prather said. Were hopeful that if it does come, it will be in a small amount. We dont want any increase, but if we do get one, then we hope for not any more than 3 cents. Kentuckys 3-cents-a-pack cigarette tax is the nations second-lowest, expected to generate $7 million in revenue for the state this year. Right now, well continue to move forward with the 75 cents. There may be a time for a compromise further down the road, said Carol Roberts, executive director of Kentucky ACTION, a health advocacy group. The idea, however, doesnt have local legislative support. State Sen. Richie Sanders, R-Franklin, said such a measure would have to start in the House. But Sanders questions the reliability of revenue from such a tax. It wouldnt bring in the same amount of money from year to year because consumption would likely decline when the tax increased, Sanders said. Some states that have raised taxes find that their revenue is actually less than in previous years. Weve got to be careful not to outtax the border states. And what I would want to do is talk to some people in congressional delegation and make sure an increase wouldnt have an effect on proposed buyout. Sanders didnt know what impact, if any, that might be, but he suggested that the amount of tobacco settlement money coming to the state could decline because it is based on the amount of tobacco sold in the state. In addition to the 3 cents tax on each pack of cigarettes, the state receives 6 percent sales tax, he said. I just dont believe there would be support for that in the legislature, Wilkey said. We need to look at modernizing and updating the tax code so that it is more fair. Wilkey declined to say whether any increase had a chance of passage if it were promoted as a way to curb teen smoking. The Associated Press contributed information for this article.