The Kentucky General Assembly has passed House Bill 5 to remove the state's tax on aging barrels of spirits.
The
Kentucky Distillers’ Association (KDA) describes the tax as
discriminatory, as it is the only one of its kind in the world, and
distillers have been paying it for over 50 years.
- The
bill is a “common-sense compromise” that balances the need to fund
schools, emergency services, and other local government entities with
the distilling industry's interests.
- The KDA says the move provides distillers equal treatment to other manufacturing industries not taxed during production.
- The
KDA hopes Governor Andy Beshear will sign the bill into law and create
good-paying local jobs while attracting millions of tourists worldwide.
- Despite
the relief, the KDA warns that distilling remains Kentucky's
highest-taxed industry, paying $286 million in taxes annually.
- The
Kentucky Bourbon industry generates $9B each year for the state's
economy and sustains more than 22,500 jobs with an annual payroll
topping $1.2 billion a year, the KDA said.
- Visitor numbers to the Kentucky Bourbon Trail surpassed two million for the first time last year.