KY Tax Facts
Kentucky needs new sources of revenue income both to meet the growing demands of its population and its industries, but also to offset losses currently being felt by changing socio - economic realities. The imbalance in KY's pension requirements appear to be at a critical juncture. Meanwhile consumer taxes appear to be high especially when considering the state's population and current economic status.
1. Coal Eastern Ky has lost 4,000 mining jobs in the year prior to 4/13/13, with a loss of severance tax of 33% only $154 million as compared to $228 million from the previous year (KCEP)
2. Gasoline Excise Tax KY is number 23 in the states for the tax it places on gasoline at 26 cents per gallon.
3. Telephone Excise tax KY is number 21 in cost among the other states.
4 Cigarette Excise Tax KY is number 39 out of 50 states
5. Wine Excise Tax KY is the highest in the nation
6. Beer Excise Tax KY is the 6th highest in the nation
7. Liquor Excise Tax KY is 17th in the nation with an 11% additional tax on all alcoholic beverage
8. Sales Tax KY current tax is 6% with groceries and prescription drugsexempted although there has been some mention of adding 6 % sales tax on the purchase of groceries.
9. Property Tax KY is number 36 per median tax rate per state
10. Yearly KY Excise Tax per person annually is $545 - higher than 60% of the other states
11. Road Fund Receipt shortfall of FY 2015 was $20 million dollars
12. State Pension systems will need to pay $520 million - about 5% of the state's total annual resources - to maintain current funding levels (NPR)
13. Special Interest Priorities KY will offer $12.2 billion in tax breaks versus $10.3 billion in revenues in 2016 Current practice allows tax breaks to be added and remain in the tax code without a benefits evaluation (KCEP)