State Budgets: Kentucky Governor Urges Cigarette Tax Increase December 29, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman Kentucky Gov. Steve Beshear (D) has proposed a 233% hike in the cigarette tax, from 30 cents to $1 per pack, as part of a package to address a $456 million shortfall in the $19 billion biennial budget. Other actions he recommends include $147 million from a 4% spending cut and moving the use of $144 million in rainy day funds from next year to this year. More on Kentucky here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Kentucky Cigarette and Tobacco Taxes Excise Taxes Individual and Consumption Taxes Tags State Tax and Spending Policy