Whiskey barrel tax exemption bill goes to the governor

The House voted 78-12 Monday to exempt Jack Daniel’s whiskey barrels and those of smaller Tennessee distillers from paying property taxes. An attorney general’s opinion says they are subject to being taxed and Moore County – home of the Jack Daniel’s distillery in Lynchburg – wants to do so. Taxing the barrels as personal property would mean more than $2 million in new revenue for the county.

The Senate had approved the bill (SB2076) earlier on a 30-0 vote, so it goes to Gov. Bill Haslam for his presumed signature — or maybe without his signature as a bow to the AG opinion.  The bill was pushed by lobbyists for the distilleries — Jack Daniel’s and others — and opposed by local government lobbying groups including the Tennessee Municipal League and the Tennessee County Services Association contending the tax break amounted to special treatment for one group in violation of the state constitution. Proponents of the bill sharply disputed the AG opinion.

Previous post HERE.

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