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Jack Daniel's Fights Possible Tennessee Whiskey Barrel Tax

Martin Molcan
/
123RF Stock Photo

A Tennessee whiskey giant wants state lawmakers to ensure that distillers aren't subject to property tax on whiskey barrels.

Jack Daniel's is pushing the barrel tax exemption bill after an auditor for Moore County's property assessor recently determined the company's barrels are taxable.

A legislative fiscal review says the tax would cost Jack Daniel's $2.8 million dollars this year.

Master distiller Jeff Arnett says the barrels are inventory because they're sold for other uses afterward. He says the tax would hurt Tennessee distilleries and would be against the state Constitution.

The Tennessee County Services Association's lobbyist Ralph Cooper says the audit found Jack Daniel's hadn't self-reported the barrels for personal property tax.

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