General Assembly

Barrel Tax Bill Under Consideration in Kentucky Legislature

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February 28, 2023 – Kentucky state lawmakers have just 11 legislative days left to consider a bill that would phase out the state’s “barrel tax” on barrels of aging Bourbon. House Bill 5 would start phasing out the tax in 2026 and end it completely in 2039, and is pending in the Kentucky House Appropriations and Revenue Committee. Kentucky is the only state that taxes inventories of maturing spirits, and the tax raised approximately $40 million for local governments in 2021. Distillers have the ability to take a credit for the barrel taxes they pay against their corporate state income Read More »

Private Barrel Kentucky Bourbons in Legal Jeopardy

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January 29, 2022 – Sales of “private selection” barrels by distillers in Kentucky have become popular choices for retailers, bars, restaurants, and even whiskey clubs. However, it turns out that those sales actually violate state liquor regulations in Kentucky, and perhaps even at the federal level. It’s not because sales by the barrel are specifically banned, but because the process of selecting those barrels violates a number of state regulations. Kentucky’s Alcoholic Beverage Control Board enforces the state’s regulations, and has issued an advisory opinion to that effect, according to Kentucky Distillers Association president Eric Gregory. “Right now, the ABC Read More »

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