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Jack Daniel’s distillery facing possible $3.5 million property tax increase

October 25, 2011

You can't blame the folks in charge of producing Jack Daniel's for having a few stiff shots of their signature sour mash.

Jack_daniels_bottle_glassMoore County, Tenn., council members want the distillery, located in the tiny town (population 361, according to the whiskey's label) of Lynchburg, to pay substantially more in property taxes.

What's substantial?

From a current $1.5 million annual bill to as much as $5 million a year.

As I said, another round, please.

In order to collect the new revenue, the county council voted to ask the Tennessee legislature to authorize a local referendum on whether the distillery should pay more in property taxes.

The actual tax due would be based on how many barrels of sour mash Jack Daniel's fills. The proposal would charge the distillery up to $10 for every barrel. Since a barrel holds about 294 liters, the tax would amount to 3.4 cents per bottle, according to research by the tax supporters.

Who thinks those extra pennies (and more) show up on the liquor store shelf price if the new tax is instituted? Me, too.

If state lawmakers agree with the council members' request, then a year from now Moore County voters will get to decide whether their biggest, and most famous, business is liable for a larger property tax tab.

The distillery naturally says it's already paying its Tennessee neighbors plenty in taxes. Plus, tax opponents say, Jack Daniel's has brought attention, and tourists (a quarter of a million last year), to the smallest county in the Volunteer State.

Folks who are for the per barrel tax, however, say the relationship works both ways.

"Lynchburg and the people of Moore County have been involved in the success of the Jack Daniel's brand; the value of the brand worldwide is due in no small measure because they have marketed our town and people successfully," Charles Rogers, who has led the campaign for the new tax, told the Associated Press.

While Lynchburg locals might support the tax, there's much less enthusiasm statewide.

And you can bet that that the distillery's owner, Brown-Forman Corp., already is working on a public relations and political campaign to stop the increased property tax.

Open another bottle, boys. This is gonna take a while.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • What happens when they close shop and move elsewhere? What will the town do then lol

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