Kentucky's Capitol
(2010-02-09)
Rep. Tommy Thompson, D-Owensboro, sponsored the moist, smokeless tobacco bill, which failed to win passage in the House Appropriations and Revenue Committee.
Photo courtesy Legislative Research Commission (Click image to enlarge)
FRANKFORT, KY (WEKU) - The House budget committee has narrowly rejected legislation to tax moist smokeless tobacco the same way as all other smokeless products. Rep. Tommy Thompson, the bill's sponsor, claims changing the tax from a per unit assessment to basing it on value, simply restores fairness.
"Now, Kentucky is the only state in the United States that taxes moist snuff on a unit basis," said Thompson.
Danny Kingings is plant manager of the U.S. Smokeless tobacco plant in Hopkinsville. He says the facility, which produces moist snuff, purchases about half of all the dark leaf tobacco grown in Kentucky.
"Make no mistake about the effect of this bill," said Kingings. "This bill is a tax increase on premium moist snuff tobacco products that my company makes."
Kingings is pleased with the committee action.
"We're already paying a higher sales tax than we have on the other products that's actually cheaper, so we feel like the excise tax should be treated fairly, and at 19 cents a can," said Kingings.
The measure was defeated 14-12 by the House Appropriations and Revenue Committee.
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