LOUISVILLE, Ky. — The Kentucky House passed a controversial bill that would lower the bourbon barrel tax Monday.
The bill would gradually lower the property tax for distilleries.
County leaders have said the tax helps fund everything from fire departments to school districts.
Supporters of the bill said the tax could prevent distilleries from coming to Kentucky.
"I don't think anybody anticipates that the bourbon industry is suddenly going to leave Kentucky. It is simply not going to happen," Republican Rep. David Osborne said. "It is Kentucky's heritage and the distillers will continue to distill in Kentucky. I do believe there is a barrier to entry for new start-ups."
However, Republican Rep. Candy Massaroni said she is all for cutting taxes but not like what's proposed in the bill.
"I'm all for cutting taxes, but I'm not for cutting taxes of a booming industry that's going to place the burden on the backs of my constituents in Nelson County. I know it's hard to overcome a well-funded corporation that's motivated by profits rather than supporting the community that have made them and sustained them," she said.
The bill now heads to the Senate.
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