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Nationally, the rate was 8.0%.2 Economics of tobacco use and tobacco control Economics of tobacco use in Kentucky Kentucky received $507.3 million (estimated) in revenue from tobacco settlement payments and taxes in fiscal year 2019.4 Of this, the state allocated $3.8 million in state funds to tobacco prevention in fiscal year 2019, 6.7% of the Centers for Disease Control and Preventions annual spending target.4 Smoking-related health care costs: $1.92 billion per year4 Smoking-related losses in productivity: $2.79 billion per year5 Kentucky tobacco laws Cigarette tax in Kentucky Tobacco taxes Kentucky is ranked 36th in the U.S