Taxing Jack: Tennessee County Seeks Levies from Famed Distillery

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Bottles of Jack sit on the bottling line in Lynchburg, Tenn.

Moore County, Tenn. is suffering even while its most historic resident, Jack Daniel, and his eponymous distillery continue to rake in profits. So what’s a little tax to help keep the area in business?

Beloved whiskey brand Jack Daniel’s has brought international renown to the tiny corner of southern Tennessee. Last year, it brought 250,000 tourists to the region, the Tennessean reports. The marketing gurus behind the smoky-sweet Tennessee whiskey have turned their Lynchburg distillery into as much of an icon as their black-labeled Old No. 7 bottle. Should they be forced to help keep the region in business as the Tennessee whiskey keeps flying off shelves?

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The county has proposed taxing each barrel of whiskey that emerges from the distillery. The Moore County council is considering a $10 tax each time a barrel is filled with whiskey, which would bring in $4 million annually for the county government. The tax amounts to a mere 3.4 cents per bottle, according to supporters.

The council explains that the tiny tax will help to balance the county’s checkbook and improve local infrastructure to help accommodate the bustling tourism business. The Tennessean reports that parking is a challenge around the town and the highways in town aren’t wide enough to hustle through visitor and distributor traffic.

But Jack Daniel’s parent company, Brown-Forman, is pushing back heavily against the levy. General Manager Tommy Beam argues that the company already contributes its fair share – the distillery is the county’s largest property tax and sales tax contributor, as well as its largest employer with 450 workers.

Perhaps the residents of Moore County don’t understand the allure of Jack – the county has been dry since the Prohibition era. Sounds like both sides should toast a glass to an eventual agreement.

Nick Carbone is a reporter at TIME. Find him on Twitter at @nickcarbone. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.

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