In Kentucky, where 95% of the world’s bourbon is manufactured, counties are revolting after the legislature voted to phase out a barrel tax they have depended on to fund schools, roads and utilities.
MULBERRY, Tenn. — For decades, the whiskey and bourbon makers of Tennessee and Kentucky have been beloved in their communities. The distilleries where the liquor is manufactured and barrelhouses where it is aged have complemented the rural character of their neighborhoods, while providing jobs and the pride of a successful homegrown industry.In Kentucky, where 95% of the world’s bourbon is manufactured, counties are revolting after thethey have depended on to fund schools, roads and utilities.
Once the barrel tax sunsets in 2043, the distillers will pay no taxes at all to Bullitt on some warehouses. The county will still have to provide them with services, protect them and protect the surrounding community from them if anything goes wrong, Summers said. Kentucky Distillers’ Association President Eric Gregory noted the compromise bill creates a new excise tax to help fund school districts. Another tax helps fire and emergency management services, though it does not apply in all counties.
Nelson County, home to Heaven Hill, Log Still and other Kentucky communities involved with the industry, recently approved a moratorium on new bourbon warehouse construction while the county updates zoning and permitting rules. Soon, any new projects will be required to seek citizen input and zoning board approval, Judge Executive Timothy Hutchins said.
When Pam Butler moved to Lincoln County 30 years ago, there were only two barrelhouses nearby, and she had “no issues."
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