WASHINGTON — Kentucky has more barrels of aging bourbon than people, and distillers in 49 of its 120 counties, but industry leaders are warning this Bluegrass bounty comes at a price that is unsustainable.

As the number of barrels has climbed to 16.1 million, so has the revenue from the taxes on those barrels–a $75 million tab this year alone and an increase of 163% from five years ago, according to the Kentucky Distillers’ Association.

A bill passed by Kentucky lawmakers in 2023 to gradually phase out the tax will begin providing distillers some relief next year, but other challenges remain, said KDA President Eric Gregory.

“One of the reasons why we have a lot more barrels these days is because those barrels were going to be bottled and that whiskey was going to be sent overseas, an

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