Kentucky’s tax hike on smokers is giving the state budget a healthy boost.
Kentucky took in $830 million in general fund taxes and fees last month, totaling a $37 million increase from last July.
From that increase, $23 million was attributed to Kentucky’s cigarette tax. This tax increased to one dollar and 10 cents on June 30th. The hike in price was approved by the state legislature in April.
State officials say that it’s too soon to see the effects of the decision extend the 6% sales tax to services like auto repair, veterinary care, and dry cleaning.