The Bluegrass Institute for Public Policy Solutions (BIPPS) issued the following statement in response to this evening’s passage of House Bill 5 by the Kentucky House of Representatives.

The House’s decision to give final approval on the session’s final day to removing the anti-growth bourbon barrel tax while more than adequately addressing concerns of local communities dependent on its revenue is the right policy for the long term.

Passage of House Bill 5 recognizes both the current impact Kentucky’s signature industry has on the commonwealth by creating billions in economic impact and employing tens of thousands of its citizens while removing a barrier for future bourbon entrepreneurs and craft distillers to see the Bluegrass State as the place to get their start.

New distilleries also will create opportunities for more Kentucky counties to benefit from the tourism surrounding bourbon.

Lawmakers rightly resisted the temptation to put off this vote by pointing to the current strength of Kentucky’s bourbon industry. Instead, they recognized that other states without the competitive disadvantage of a barrel tax are aggressively seeking a bigger piece of the nation’s distilling pie and removing it is necessary for Kentucky to remain the world’s bourbon capital for future generations.

The House concurred with a Senate committee substitute containing reasonable compromises, ensuring, for example, that gaps in funding for firefighters and schools in districts dependent on revenue raised by the tax will be filled. It also requires distillers to continue paying the tax on barrels housed in warehouses built using industrial revenue bonds.

By signing this bill, Gov. Andy Beshear can put his stamp of approval on the hard work and comprehensive compromise which resulted in House Bill 5 being a big policy win for Kentucky’s future.

For more information or comment, please contact Bluegrass Institute president and CEO Jim Waters at (270) 320-4376 or jwaters@freedomkentucky.com.