Statement from Kentucky’s Bourbon Industry on House Bill 5

February 27, 2023

“Eliminating the job-killing inventory tax on aging barrels requires consideration of the distilleries that pay it and the local communities that benefit from it.

Kentucky’s signature Bourbon industry 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.

While the bill will initially and significantly increase our tax liability, we appreciate the leadership of A&R Chairman Jason Petrie and Speaker David Osborne to put forth a proposal to slowly phase out the discriminatory tax.

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.

Thank you to the legislature for addressing this crisis. It is imperative that the Kentucky General Assembly end the tax on a $9 billion homegrown industry that employs 22,500 Kentuckians and attracts millions of tourist visits to Kentucky each year.”

*This statement is provided by the Kentucky Distillers’ Association on behalf of its 52 member companies.

For more information, contact: KDA President Eric Gregory at eric@kybourbon.com.

Founded in 1880, the Kentucky Distillers’ Association is a 501(c)(6) non-profit trade association that passionately unites, promotes, protects and elevates the Commonwealth’s signature Bourbon and distilled spirits industry. Its diverse and growing membership produces the overwhelming majority of the world’s Bourbon, from legendary, global brands to emerging micro distilleries that are fostering the next generation of the Commonwealth’s timeless craft and treasured economic engine. The KDA maintains an open membership policy, champions a strong commitment to the responsible and moderate consumption of spirits, and fights to curb underage drinking and drunk driving.

KENTUCKY BOURBON TRAIL®, KENTUCKY BOURBON TRAIL CRAFT TOUR®,, KENTUCKY BOURBON AFFAIR™, KBT®,, BOURBON TRAIL™, KENTUCKY BOURBON HALL OF FAME®,, ORDER OF THE WRIT®,, KENTUCKY BOURBON TALES®,, KENTUCKY BOURBON TRAIL WELCOME CENTER®,, URBAN BOURBON TRAIL® and THE PROOF IS HERE®are trademarks/service marks of the Kentucky Distillers’ Association.

Please enjoy Bourbon like a true Kentuckian – Responsibly.