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Saturday, November 14, 2026Nov 14

As whiskey and bourbon business booms, beloved distillers face pushback over taxes and emissions

People look out over a Jack Daniels barrelhouse complex, as they stand on a landowners property that borders the facility Wednesday, June 14, 2023, in Mulberry, Tenn. A destructive and unsightly black fungus which feeds on ethanol emitted by whiskey barrels has been found growing on property near the barrelhouses. (AP Photo/John Amis)
People look out over a Jack Daniels barrelhouse complex, as they stand on a landowners property that borders the facility Wednesday, June 14, 2023, in Mulberry, Tenn. A destructive and unsightly black fungus which feeds on ethanol emitted by whiskey barrels has been found growing on property near the barrelhouses. (AP Photo/John Amis)

MULBERRY, Tenn. (AP) — For decades, the whiskey and bourbon makers of Tennessee and Kentucky have been beloved in their communities. The distilleries where the liquor is manufactured and barrelhouses where it is aged have complemented the rural character of their neighborhoods, while providing jobs and the pride of a successful homegrown industry.

Now, the growing popularity of the industry around the world is fueling conflicts at home.

In Kentucky, where 95% of the world’s bourbon is manufactured, counties are revolting after the legislature voted to phase out a barrel tax they have depended on to fund schools, roads and utilities. Local officials who donated land and spent millions on infrastructure to help bourbon makers now say those investments may never be recouped.

Neighbors in both states have been fighting industry expansion, even suing distillers. Complaints include a destructive black “whiskey fungus,” the loss of prime farmland and liquor-themed tourist developments that are more Disneyland than distillery tour.

The love affair, it seems, is over.