FRANKFORT, Ky. (AP) -- State lawmakers have effectively eliminated a tax on aging barrels of bourbon in a move to protect one of the state's signature industries.
Kentucky spends that tax money on public education, making it difficult to eliminate the tax completely. This week lawmakers approved a tax credit that would offset the cost of the tax. Public schools would still get their tax money, but overall state revenues would decrease by about $14 million in five years once the tax credit is fully implemented.
Kentucky distillers have increased their inventory of aging bourbon by more than 1 million barrels since 1999. State tax collections have more than doubled since then.
The law requires Kentucky distillers to spend the savings from the tax on improving facilities in Kentucky, including remodeling to promote tourism.
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