A bill that provides a tax break on the bourbon industry has cleared its first major hurdle.
House Bill five is sponsored by Representative Jason Patrick.
Chair of the House and R Committee.
It calls for phasing out the tax on bourbon barrels by 2039.
Today, Chairman Patrick told committee members that Kentucky now has less than 3% of the country's distilling permits.
He said it was 25% a decade ago.
He contends House Bill five is needed to keep the bourbon industry competitive and in Kentucky.
But several county officials, including police chiefs, fire chiefs and superintendents, opposed that tax break.
They argue the bill takes money out of their budgets, breaking a promise that distilleries made when they moved to Kentucky.
Cities have been a big ally of the bourbon industry.
They have used their limited resources to be a good partner by issuing bonds, providing sewer upgrades and other things, such as guaranteeing occupational tax credits.
The passage of House Bill five takes that all away.
Devastation is the only word to use.
Our budget would be cut by more than 60%, leaving us with only the fear and concerns the citizens had with makers locating in our city the blanket of black mold, traffic and wear and tear of their trucks that will continue to use our streets and the memory of past promises made.
Chairman Patrick did address some of the concerns from school officials, he said.
Today, his committee also passed House Bill 447, which he said would help schools.
While the bourbon tax is being phased out.
This is a companion bill that essentially creates a floor to 23 numbers for the local contribution within the seat formula for the public education system.
I think it was even some of the gentleman before from the city and county districts in and around Nelson had indicated there can be some seek backfill.
That's not 100%.
This would get us close to 100%, if not exactly what the floor guarantee with the local contribution tied to 23 numbers.
From here on out.
Both bills passed committee this afternoon and were quickly passed on the House floor as well.
The bills are now headed to the upper chamber for consideration there.