House Bill 5 Update
Update on “House Bill 5” as it Makes its Way to the Kentucky State Senate for Consideration
We wanted to briefly update you on the progress of “House Bill 5” also known as the “Barrel Tax” legislation as it makes its way from the Kentucky State House to the Senate for consideration. Even if you are not located in Kentucky, we want to ensure that you are educated about how this legislation will impact our industry.
The “Barrel Tax” bill being sent to the Senate for debate and vote, represents a “compromise” version of the original bill that will ensure the future growth of the bourbon industry and when coupled with its companion legislation HB 447, will protect future education funding over the next decade, if needed, for Nelson County Schools. In addition, the legislation also supports continued funding for local fire and emergency services.
If the Senate passes this legislation in its current form, or it closely mirrors the language as currently stated, we see this as a “win-win” for the industry and also a “win-win” for the local community.
Here is a brief synopsis of the key points in the current legislation:
- Slowly phases out the barrel tax between 2026 and 2039.
- Keeps schools whole through a state appropriation should their funding drop below current levels.
- Protects local fire departments and emergency services by allowing them to charge distillers a fee for services rendered if their barrel tax funding falls below current levels.
We will continue to update you on the progress of this important legislation as it makes its way through the Senate and hopefully to the Governor’s desk for signature. If you have any further questions about the status of the bills, please refer to the below resource:
