Kentucky Bourbon-Makers Toast Bill Phasing Out Barrel Tax

Kentucky’s legislature has voted to completely phase out the property tax on the value of barrels of aging spirits.

The state’s $9 billion distilling industry sees the bill’s passage as a milestone to help secure bourbon supremacy in Kentucky, while local officials worry that the tax relief will put a greater financial burden on their communities.

The industry has offered concessions to help cushion affected local governments, agreeing to a longer phaseout of the tax and protecting funding for schools, fire departments, and ambulance services in counties where distilled spirits are stored.

The move is expected to save the industry millions of dollars in taxes each year.