Economy
8:57 am
Tue December 18, 2012

Kentucky Tax Panel Offers Changes to Individual, Corporate, and Cigarette Taxes

A panel appointed by Gov. Steve Beshear to look at changes to Kentucky's tax system has proposed lowering individual and corporate tax rates, raising the cigarette tax and expanding the state sales tax to certain services.

Lt. Gov. Jerry Abramson said the changes recommended by the Governor's Blue Ribbon Commission on Tax Reform would generate about $659 million in new state revenue each year.

Abramson, who headed the commission, said the changes will make Kentucky more competitive in creating jobs.

The proposal would lower the state's top corporate tax rate to 5.8 percent from 6 percent. Individual income tax rates also would drop. The state's cigarette tax would go to $1 a pack from the current 60 cents.

Beshear says he'll discuss the commission's recommendations with state lawmakers.