With the number of distilleries tripling since 2007 and the bourbon industry still experiencing a boom, industry representatives plan to push for more regulatory changes in 2016 that they say could boost tourism and generate another $2 million dollars annually.
In her remarks before the interim joint committee on labor, industry, and economic development this week, Kristin Meadors held up states that have relaxed rules on distilleries as examples of what Kentucky should be doing.
"These other states have adapted quickly in changing their laws and reducing their fees to attract the next generation of distillers, jobs, and investment," she said. "Rhodes Island completely exempted wine and spirits from their sales tax. In 2009, we added a sales tax to the sale of alcohol here in Kentucky."
And the industry has a receptive audience in Frankfort. At the meeting, Senate Majority Caucus Chairman Dan Seum said he would get behind efforts to scrap the 2009 bill that added a 6 percent sales tax on retail sales of distilled spirits.
"I do think they're overtaxed. It's an industry that obviously wants to pay its fair share, but that's probably over the top and I'm certainly going to recommend that we repeal that six percent," he said.
Cn|2 reports other items on the bourbon industry's Christmas list include: increasing the 3-liter limit for alcohol purchases at distilleries, upping sample sizes, and allowing the facilities to sell drinks by the glass.
Producers have reason to be optimistic it could happen. In 2014, legislators approved the Kentucky Bourbon Barrel Reinvestment Credit, a measure that did away with a yearly tax on aging spirits.
