Kentucky Economy

The total gross state product for 2005 was US$140.4 billion, 27th in the nation. Its per-capita personal income was US$28,513, 43rd in the nation.[58] Kentucky's agricultural outputs are horses, cattle, tobacco, dairy products, hogs, soybeans, and corn. Its industrial outputs are transportation equipment, chemical products, electric equipment, machinery, food processing, tobacco products, coal, and tourism. The Eastern Kentucky Coal Fields are recognized as being among the most productive in the nation.

Kentucky ranks 4th among U.S. states in the number of automobiles and trucks assembled.[59] The Chevrolet Corvette, Ford Explorer, Ford Super Duty trucks, Toyota Camry, Toyota Avalon, and Toyota Solara are assembled in Kentucky.

Unlike many bordering states which developed a widespread industrial economy, much of rural Kentucky has maintained a farm based economy, with cattle, corn, and soybeans being the main crops. The area immediately outside Lexington is also the leading region for breeding Thoroughbred racing horses, due to the high calcium content in the soil. Despite being the 14th smallest state in terms of land area, Kentucky still ranks 5th in the total number of farms, with more farms per square mile than any other U.S. state.[60] The average farm size in Kentucky is only 153 acres.[61]

Kentucky ranks 5th nationally in goat farming, 8th in beef cattle production [62] , and 14th in corn production.[63]

There are 5 income tax brackets, ranging from 2% to 6% of personal income.[64] The sales tax rate in Kentucky is 6%.[65] Kentucky has a broadly based classified property tax system. All classes of property, unless exempted by the Constitution, are taxed by the state, although at widely varying rates.[66] Many of these classes are exempted from taxation by local government. Of the classes that are subject to local taxation, three have special rates set by the General Assembly, one by the Kentucky Supreme Court and the remaining classes are subject to the full local rate, which includes the tax rate set by the local taxing bodies plus all voted levies. Real property is assessed on 100% of the fair market value and property taxes are due by December 31. Once the primary source of state and local government revenue, property taxes now account for only about 6% of the Kentucky's annual General Fund revenues.[67]

Until January 1, 2006, Kentucky imposed a tax on intangible personal property held by a taxpayer on January 1 of each year. The Kentucky intangible tax was repealed under House Bill 272.[68] Intangible property consisted of any property or investment which represents evidence of value or the right to value. Some types of intangible property included: bonds, notes, retail repurchase agreements, accounts receivable, trusts, enforceable contracts sale of real estate (land contracts), money in hand, money in safe deposit boxes, annuities, interests in estates, loans to stockholders, and commercial paper.

To boost Kentucky’s image, give it a consistent reach, and help Kentucky stand out from the crowd" the Fletcher administration launched a comprehensive branding campaign with the hope of making its $12 - $14 million advertising budget more effective. The "Unbridled Spirit" brand was the result of a $500,000 contract with New West, a Kentucky-based public relations, advertising and marketing firm to develop a viable brand and tag line. The administration has been aggressively marketing the brand in both the public and private sectors. The "Welcome to Kentucky" signs at border areas have Unbridled Spirit's symbol on them.

The previous campaign was neither a failure nor a success. Kentucky's "It's that friendly" slogan hoped to draw more people into the state based of the idea of southern hospitality. Though most Kentuckians liked the slogan, as it embraced southern values, it was also not an image that encouraged tourism as much as initially hoped for. Therefore it was necessary to reconfigure a slogan to embrace Kentucky as a whole while also encouraging more people to visit the Bluegrass. [69]

The best selling car in the United States, the Toyota Camry, is manufactured in Georgetown, Kentucky.

The best selling truck in the United States, the Ford F-Series, is manufactured in Louisville, Kentucky.

The "Unbridled Spirit" logo.