Taxcaster 2021 calculator4/6/2023 The barrel tax is a barrier to bourbon production startups in Kentucky, and it's a disincentive to store bourbon in the Bluegrass State, the speaker said. “Kentucky taxes alcohol more than any other state in the country,” Osborne said. The bill's leading supporters include House Speaker David Osborne, who warned that “it is not our right to be home to the bourbon industry.” Several other states have surpassed Kentucky in total number of distilleries, though Kentucky is home to the largest production plants. Kentucky produces 95% of the world’s bourbon and is home to nearly 10 million barrels of aging spirits, according to the Kentucky Distillers’ Association. “We need the money to survive or we’re going to have to cut services,” Nelson County Judge-Executive Timothy Hutchins told a House committee earlier Monday. Leaders from some of the top bourbon-producing counties, however, worry that the inventory tax phaseout will take away an important revenue source for local governments. "Taxes aren’t levied on vehicles rolling down the assembly line, dishwashers as they are being built, or tobacco drying in the barn." “No other manufacturer pays taxes on its goods during production,” said Eric Gregory, president of the the Kentucky Distillers’ Association. The barrel tax - assessed only in Kentucky - hurts the state's competitiveness and threatens to chip away at the state's status as the bourbon industry epicenter, the bill's supporters said. With only a few days left in this year’s 30-day legislative session, the proposal advances to the Senate, where Republicans also have a supermajority. House Bill 5 cleared the House on a 59-40 vote, soon after emerging from committee. The phaseout would begin in 2026 and be completed by 2039. The measure aims to phase out a property tax on the value of stored bourbon barrels - a top industry priority. (AP) - Proposed tax relief for Kentucky's bourbon makers was fast-tracked Monday in advancing in the state House, but local leaders living near some of the world's best-known distilleries were in no mood to toast the industry victory. (Greg Eans/The Messenger-Inquirer via AP)įRANKFORT, Ky. employee Coleman Savage looks over the 300,000th barrel of bourbon filled at the distillery inside the new-fill warehouse at the plant on April 20, 2021, in Owensboro, Ky.
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