Whiskey distilleries across Tennessee are upset about possibly facing a new tax.

A property assessor in Moore County, home to Jack Daniel's, says whiskey barrels are now taxable.

This could end up applying to distilleries across the state, costing them hundreds of thousands of dollars.

"We strongly feel like this tax is anti-tourism, anti-business, anti-jobs tax," said Tennessee Distilleries Guild President Kris Tatum.

While the whiskey flows at Old Forge Distillery in Pigeon Forge, it's what's holding it that's pushed a new bill forward in the general assembly.

"I think we'd lose significant numbers of our members in the state in our industry," said Tatum. "This is a new tax."

It's a new tax on whiskey barrels brought on by a Moore County property assessor who decided the biggest name in Tennessee whiskey had to pay up.

"It's being framed like it's a Jack Daniels problem, and it's not, it's an industry problem," said Tatum.

Jack Daniels has barrels upon barrels, costing them millions.

But Tatum, who's a partner at Old Forge, says the effects would be drastic for both big and small distilleries.

"We've got distilleries this could impact, you know, $150,000 to the bottom line this year alone," said Tatum.

A new bill is going through the house and senate, exempting the barrels from property taxes.

"It's gray enough to where I'm glad it ain't mine," said John Whitehead, Knox County Property Assessor.

It's somewhat of a gray area in property assessment.

Are the barrels considered taxable personal property or non-taxable inventory?

Whitehead says inventory is what a business sells so in this case, the liquor, and personal property, which is something used in the business, so maybe a computer or car.

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