WKU Public Radio News Staff
Mon April 17, 2006
Tobacco Company Angered By Tax
Frankfort, KY – A Kentucky tobacco company is fuming about a new tax passed by state lawmakers as part of their budget plan.
It would impose a new 25 cent tax on each package of cigarette rolling papers. A typical pack of 32 papers now costs $1.49.
The tax is expected to raise $750,000 a year.
A provision has angered officials of National Tobacco Company. The Louisville business imports and sells Zig-Zag cigarette papers.
National Tobacco Vice Preident Ron Tull says cigarette papers are a big part of the company's business. He says the new tax will kill its business in Kentucky.
The tax increase was not part of any bill filed during the legislative session. It was added during private negotiations by House and Senate budget conferees.