BELLEVUE, Ky. — Whether you're bar hopping or hitting up the liquor store, buying booze could soon cost you more in Kentucky.
A new bill introduced at the Kentucky Capitol would add an extra tax on alcohol sold.
Currently, people buying alcohol pay a 6% sales tax. The proposed legislation, House Bill 612, would impose an additional 4% state regulatory license fee on every single alcohol product sold.
Essentially, you'd be taxed 10% on your alcohol purchase.
Whitney Frommeyer, a managing partner at One Stop Liquor in Bellevue, said the new bill could hurt small businesses.
"You have to tell your customers, who I've known for 15-18 years, 'Hey, your stuff is 4% higher than it should be,'" Frommeyer said.
WATCH: Local liquor store owner says proposed bill would increase cost of alcohol in Kentucky
It's not just liquor stores that would be impacted. You'd be taxed for alcohol bought at restaurants, bars and convenience stores.
"This involves every single alcohol purchase done in the state of Kentucky," Frommeyer said.
Frommeyer said she's worried that if the bill passes, customers may be more inclined to buy alcohol in Ohio.
"If Kentucky continues with a higher tax rate like that, it will definitely deter people," Frommeyer said.
The state is calling the bill revenue-neutral, meaning it won't generate any extra revenue for Kentucky.
The bill's sponsor, Rep. Matthew Koch, said it's to streamline taxation and get rid of a multi-tier system.
However, Frommeyer said she doesn't see the benefit.
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She said she believes it's to help distillers and to give them relief on sales taxes. According to the bill, if it passes, that tax system would end on July 1, 2027. It would be replaced by a tax for each milliliter of alcohol contained in an alcoholic beverage.
That system would be applied to the distributors, distillers, wholesalers, wineries, manufacturers and direct shippers.
Frommeyer said the new system would shift the burden onto customers.
"The question of why has been unanswered," Frommeyer said.
The bill is still in its early stages. Frommeyer said she's encouraging folks worried about paying extra for a drink to call their state legislator.
"Tell them enough is enough," Frommeyer said.
