Welcome

Thank you for visiting paducahsun.com, the online home of The Paducah Sun.

Calendar
June 2012
S M T W T F S
27 28 29 30 31 01 02

Click here to submit an event.

Kentucky considers bourbon tax credit bourbon

By Adam BeamAssociated Press

FRANKFORT - Kentucky has more barrels of bourbon than it does people - and soon those barrels could be aging tax free. State lawmakers have voted to effectively eliminate a tax on aging barrels of distilled spirits in a nod to one of the state's signature industries that is quickly becoming a tourist attraction.

For years, Kentucky distillers have had to pay a tax every year for every barrel of bourbon it has aging in a warehouse - the only such tax in the country.

Kentucky still manufactures 95 percent of the world's bourbon because it is home to major corporations that make bourbon in bulk. But smaller, craft distilleries have been opening in other states to avoid Kentucky's bourbon tax, according to Eric Gregory, president of the Kentucky Distillers' Association.

"There are more distillers in downtown Portland than there are in Kentucky right now," Gregory said. "Who is to say one of these startup distillers in a few years won't be the next Makers Mark or Woodford Reserve?"

Kentucky distillers have increased their inventories of aging bourbon to more than 6.9 million barrels in 2013 from 5.8 million barrels in 1999. Kentucky tax collections have more than doubled during that time, to $13.8 million from $6.3 million.

But efforts to eliminate the tax have stalled over the years because the state relies on those taxes to pay for public education. This week, lawmakers approved a tax credit that will offset the cost of the tax, effectively eliminating it for distillers. Distillers still pay the tax, and the money still goes to public education.

But distillers get the money back in the form of a tax credit that will eventually reduce state revenues by $14 million.

Comments made about this article - 0 Total

Comment on this article

Your comment has been submitted for approval
captcha 8e022fdcc55b493a83fcd7ce04245546
Top Classifieds
  • F1 Golden Doodles M/F, Beautiful,6 wk ... Details
  • CKC Tiny Toy Poodles270-554-4308 Details
  • Rottweiler Pups For Sale with or with ... Details
  • ASPHALT & CONCRETE REPAIR, SEALIN ... Details
  • PILLOWTOP Mattress Sets, NEW in plast ... Details
  • MJS Concrete Specializing In:Stamped ... Details
  • RUNNING, fixable, junk vehicles, equi ... Details
  • Details
  • NEW 50x60 steel bldg. equipped w/12x1 ... Details
  • SEEING is believing! Don't buy p ... Details
  • 8 Unit Apt. Bldgs. For Sale By Owner ... Details
  • Corner Lot, 1 acre Kevil $16,500 2704 ... Details
  • Duplex By Owner 3 BR 1 BA each side ... Details
  • OPEN HOUSE SUNDAY 2-41906 ST RT 1748, ... Details
  • FAIRHURST BLDG.295 sq. ft. office1900 ... Details
  • BRK Colonial 4500SF 9 rm, 4br, 5 ba, ... Details
  • 1963 Chev. Bel-Air, 2 dr post, 327 5 ... Details
  • JOE'S BACKHOESERVICE Install &am ... Details
  • Mini camper just for 2. 270-205-0119 Details
This Week In Photos
Most Popular
  1. Feds: Action taken to fix mistakenly awarded work permits
  2. WKCTC goes tobacco-free
  3. Newcomb eyeing second professional win
  1. Car radios examined after recall
  2. Discrimination alleged in clerk's office
  3. Sharp contrast at Fancy Farm
  1. Feds: Action taken to fix mistakenly awarded work permits
  2. WKCTC goes tobacco-free
  3. Newcomb eyeing second professional win
Discussion

Check out these recently discussed stories and voice your opinion...