The Kentucky legislature is considering a bill that would slowly phase out the inventory tax on aging bottles of bourbon. But before the decrease takes effect, it "will initially and significantly increase our tax liability," the association said.
Kentucky Distillers Association (KDA) said it "believes the phase-out schedule in House Bill 5 ultimately benefits local communities across Kentucky by more than doubling the industry’s tax before any reduction occurs. In fact, most local communities will see no reduction from current revenues for at least the next 10 years.
"The success or failure of House Bill 5 will determine whether Kentucky's distilling industry continues to call the Commonwealth home, bringing jobs and tax revenue as it grows, or whether it is forced to look at other states for future growth or even potentially relocating existing facilities," KDA said in a statement.