Whether you’re bar hopping or stopping by the liquor store, buying booze in Kentucky could soon cost more.
Lawmakers introduced a new bill at the Kentucky Capitol that would place an additional tax on alcohol sales.
Right now, shoppers pay a 6% sales tax on alcohol. The proposed measure, House Bill 612, would add another 4% state regulatory license fee to every alcohol product sold.
In short, you would pay a total of 10% tax on alcohol purchases.
Whitney Frommeyer, managing partner at One Stop Liquor in Bellevue, said the proposal could harm 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.
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The impact would go beyond liquor stores. The added tax would apply to alcohol purchased at restaurants, bars, and convenience stores.
“This involves every single alcohol purchase done in the state of Kentucky,” Frommeyer said.
Frommeyer said she worries customers might choose to buy alcohol in Ohio if the bill becomes law.
“If Kentucky continues with a higher tax rate like that, it will definitely deter people,” Frommeyer said.
State officials describe the bill as revenue-neutral, meaning it would not bring in additional revenue for Kentucky.
The bill’s sponsor, Rep. Matthew Koch, said the goal is to simplify taxation and eliminate the current multi-tier system.
Still, Frommeyer said she sees no advantage.
She said she believes the measure aims to support distillers by providing relief on sales taxes. According to the proposal, if it passes, the existing tax system would end on July 1, 2027. Lawmakers would replace it with a tax based on each milliliter of alcohol contained in a beverage.
The new system would apply to distributors, distillers, wholesalers, wineries, manufacturers, and direct shippers.
Frommeyer said the change would place the burden on customers.
“The question of why has been unanswered,” Frommeyer said.
The bill remains in its early stages. Frommeyer said she urges anyone concerned about paying more for a drink to contact their state legislator.
“Tell them enough is enough,” Frommeyer said.
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