Kentucky House Votes to Phase Out Barrel Tax on Bourbon

Although distilleries will continue to pay the tax for the next 17 years, Kentucky Distillers Association welcomed the move.

“The KDA and its members have always asked to be treated just like every other industry in Kentucky. No other manufacturer pays taxes on its goods during production. Taxes aren’t levied on vehicles rolling down the assembly line, dish washers as they are being built, or tobacco drying in the barn," KDA President Eric Gregory said.

“The distilling industry is the highest-taxed large manufacturing industry in Kentucky, and our companies already pay a multitude of other taxes like all other businesses including property, sales and use, local occupational taxes plus alcohol license fees at the state and local levels."

The measure now goes to the state Senate.