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From YouTube: Bourbon Barrel Taxation Task Force (9-1-22)
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A
Welcome
to
the
third-
and
this
is
the
august
meeting,
even
though
it's
september
of
the
bourbon
barrel
task
force
before
we
start,
I
want
to
welcome
a
few
of
my
guests.
I've
got
my
my
county
judge.
My
soon-to-be
county
judge,
my
sheriff
everybody's
here.
I
appreciate
them
them
all,
showing
up
dean
like
that.
A
A
A
So
so,
please
understand
that
that
is
our
sole
goal
up
here,
which
means
I
need
everybody
to
get
creative.
I
don't
know
if
you
guys
ever
did
governor
scholar
or
future
problem
solving.
You
know
in
high
school.
That's
the
kind
of
thing
we're
here
to
do.
What
are
the
different
options
that
are
out
there?
What
can
we
do
creatively
to
not
hurt
anybody
involved
in
this
and
continue
to
grow
kentucky
in
a
proactive
rather
than
reactive
way,
so
that
I
will
shut
up?
Madam
secretary
phil
call
the
roll.
C
A
B
A
B
Okay,
thank
you.
Yes,
my
name
is
tim
eifler,
I'm
a
lawyer
with
stole
keenan
in
the
louisville
office.
B
We
often
represent
the
kentucky
distillers,
and
so
they've
asked
me
today
to
give
a
basically
just
a
general
overview
of
industrial
revenue
bonds
in
one
specific
context,
and
that
is
the
use
of
bonds
as
a
mechanism
to
obtain
a
state
and
local
property
tax
abatement.
So
bonds
can
be
used
for
all
kinds
of
different
things,
but
today
I
just
want
to
talk
about
that.
B
C
B
B
Those
statutes
have
actually
been
around
a
long
time,
revenue,
bonds,
kind
of
came
into
being
right.
After
the
end
of
world
war
ii,
kentucky
statutes
date
back
to
1946
and
as
originally
enacted,
they
were
pretty
narrow.
They
only
authorized
cities
to
issue
these
kind
of
bonds
and
they
were
limited
to
financing
manufacturing
projects
since
1946,
the
legislature
has
continually
expanded
these
statutes
and,
most
recently
in
2020,
the
general
assembly
extended
them
again.
B
The
the
2020
legislature
basically
extended
the
term.
So
now
we
can
issue
bonds
instead
of
30
years.
They
extend
it
at
40,
maximum
of
40
years
of
financing,
which
also
means
from
a
property
tax
abatement
standpoint
up
to
40
years
of
an
abatement,
and
they
also
clarified-
or
you
all
also
clarified-
that
solar
projects
can
qualify
for
industrial
revenue,
bond
financings
and
there's
a
number
of
solar
companies
looking
at
kentucky.
B
A
Tim,
if
I
could
interrupt
you,
real
quick,
senator
hickman,
brought
up
a
good
point.
I
just
wanted
to
make
it.
The
meeting
materials
are
available
on
the
lrc
webpage
under
special
committees.
Bourbon
barrel
taxation
task
force.
So
if
anybody
out
there
is
watching
and
wants
to
follow
the
powerpoint
sorry
interrupt.
Thank.
B
You
so
the
statutes,
authorize
cities,
counties
the
kentucky
economic
development
finance
authority,
which
of
course,
is
a
state
agency,
air
boards
and
river
ports
to
issue
these
bonds.
Kedfa
has
kind
of
an
informal
policy
that
they
act
as
issuer
only
when
a
project
involves
multiple
counties.
They've
got
assets
in
multiple
counties,
so
typically
for
these
kind
of
bonds,
and
when
we're
talking
about
property
tax,
abatements,
we're
really
talking
about
cities
and
counties
being
the
issuers
of
those
bonds.
That's
who
we
look
to
to
go,
get
this
incentive
and
that's
what
it
is
in
this
context.
B
B
This
program
is
a
little
bit
unique
in
that
it
is
totally
locally
administered,
so
the
city
or
the
county
has
its
has
complete
authority
to
decide
whether
or
not
it
wants
to
provide
this
incentive
for
a
project.
That's
going
to
locate
in
its
jurisdiction
and
at
the
end
of
the
day,
this
is
simply
a
method,
an
alternative
method
to
finance
the
assets.
B
Those
assets
are
leased
to
the
company
company
gets
use
and
access
to
those
assets
during
the
term
of
the
bonds
and
the
bonds
are
issued
to
pay
the
cost
of
those
assets
with
the
company's
lease
payments
being
used
to
repay
the
debt
over
the
term
of
the
bond.
So
it's
a
financing
kind
of
routes
through
the
city
or
county,
but
by
putting
title
in
the
city
or
county's
name
and
leasing
it
back.
B
Okay,
so
now,
let's
look
at
the
statute,
so
krs
103
210
confirms
that
industrial
revenue
bonds
are
there
not
for
public
projects,
they're
not
there
for
school
districts
to
build
schools
to
build
county
courthouses.
These
are
these
are
a
means
for
economic
development,
for
private
industry
in
the
in
the
jurisdiction.
B
The
statute
provides
that
bonds
can
be
issued
to
promote
economic
development,
relieve
conditions
of
unemployment
and
encourage
the
increase
of
industry
in
the
state
and
the
key
definition
is.
The
bonds
can
be
issued
under
the
statutes
only
to
finance
an
industrial
building
and
that's
a
defined
term,
and
so
only
things
that
fit
within
that
definition
can
qualify
for
a
bond
financing
and
also
qualify
for
the
abatement.
So
for
any
project
we
have
when
we're
looking
around
the
state.
B
Critically,
it's
got
to
be
a
capital
asset,
so
we're
not
talking
about
things
that
are
expense.
We're
not
talking
about
inventory,
we're
talking
about
assets
with
a
long-term,
useful
life.
They're
going
to
be
there
a
long
time.
Those
are
the
type
of
assets
you
can.
You
can
finance
with
bonds.
There
are
15
categories
in
that
statute.
It's
krs
103.2
is
the
statute
with
the
definition,
and
it's
got
a
through
o
subsections
with
different
categories
you
can
fit
in
and
it's
a
broad
range
of
things.
Obviously
manufacturing
was
there
from
the
very
beginning.
B
B
The
ketu
maintains
a
list
of
them
as
well,
so
you
can
find
out
where
they,
you
know
what
companies
have
have
sought
these
bonds
and
obtained
property
tax
abatements
for
their
projects,
and
we
just
compiled
a
list
on
the
next
two
pages.
Just
to
show
you
the
kind
of
the
depth
and
breadth
of
the
bond
issues
that
are
out
there
we're
talking
about
projects
all
over
the
state
projects
that
involve
all
kinds
of
different
things.
We've
got
lots
of
distribution,
centers
some
hotels
greenhouses
and
then
I
think
clearly
the
biggest
category
is
manufacturing.
B
I
mean
we
primarily
see
these
being
used
to
finance
manufacturing
projects,
and
it
makes
sense
because
out
of
all
the
projects,
manufacturing
typically
requires
the
largest
capital
investment
to
undertake.
You
know
the
activity
so
you're
talking
about
a
lot
of
taxable
property
potentially
coming
into
the
jurisdiction.
B
You
know
a
temporary
abatement
as
an
inducement
to
get
that
project
to
locate
in
the
city
or
county
is
very
meaningful
for
manufacturers.
So
you'll
see
there
are
lots
of
them
on
here
and
including
distilleries.
So
under
kentucky
law
distilleries
are
manufacturers,
so
industrial
revenue
bonds,
like
for
any
other
manufacturer,
are
available
to
distilleries
for
their.
You
know
not
only
the
distilling
operation,
but
also
the
aging
process,
so
the
warehouses
as
well.
C
B
So
again,
turning
back
to
the
statute,
this
is
again
the
definition
of
industrial
building.
I
just
mentioned
subsection
a
is
the
manufacturing
category.
That's
the
category,
that's
relevant
for
distilleries
anybody
else
engaged
in
manufacturing
or
assembling
that's
the
category
they
fit
under,
so
they
can
use
bonds
for
financing,
but
there's
14
other
categories
below
that
in
the
statute.
B
The
technical
term
would
be
they
are
a
conduit
financing,
and
by
that
I
mean
technically
it's
the
city
or
county
borrowing
funds.
They
issue
the
bonds
they're
on
the
bond
document
as
the
obligor
to
pay
it,
but
there
is
a
conduit
because,
at
the
end
of
the
day
the
money
that's
borrowed
is
distributed
to
the
company
to
reimburse
it
for
the
cost
of
the
assets
for
the
project
and
the
money
to
repay
the
bonds
are
paid
by
the
company
and
its
rent
payments
to
the
bondholder
to
repay
those
bonds.
B
So
the
the
city
or
county
is
in
the
middle
they're
a
conduit
but
they're
they're,
really
not
technically
the
borrower
at
the
end
of
the
day,
and
I
say
that
because
these
are
not
general
obligations,
these
are
special
obligations
and
the
sole
source
of
repayment
of
these
bonds
is
the
company
and
its
rental
stream.
So
if
there's
a
default
city
or
county
is
not
on
the
hook
for
these
bonds,
they
don't
have
an
obligation
to
levy
a
tax
to
repay
the
bonds.
The
bondholder
can
only
look
to
the
company
and
you
say
well:
why
don't?
B
We
just
have
a
loan
directly
with
the
company.
It's
because
that's
the
statutory
scheme.
We
have
it
flows
through
local
government
to
to
create
the
structure,
and
it's
common
in
other
states
as
well
kentucky's,
not
the
only
one
that
does
this.
A
lot
of
the
southern
states
have
an
identical
system
that
this
is
used
for
a
property
tax
abatement
under
this
structure,
so
the
debt
itself,
when
it's
borrowed,
is
secured
by
a
pledge
of
the
lease
and
the
revenue
stream
from
the
company.
B
In
all
the
conversation,
whenever
we
go
to
local
government
and
give
our
presentation
on
our
request
for
bonds,
the
key
takeaway
for
the
members
of
the
fiscal
court
of
the
city
council
is
that
the
bonds
are
not
a
general
obligation
of
the
city
of
county
not
like
when
you
borrow
to
build
a
city
hall
or
a
courthouse,
or
something
like
that.
They
they
are
not
backed
up
by
the
credit
of
the
issuer,
the
city
or
county
they're,
not
backed
up
by
a
pledge
of
taxing
authority
and
by
statute,
and
also
there's
case
law.
B
B
You
are
capped
at
how
much
you're
allowed
to
borrow
and
that
cap
is
a
function
of
some
percentage
of
the
taxable
value
of
property
in
your
district.
So
the
question
often
comes
up.
If
we
issue
these
bonds
is
that
going
to,
you
know,
reduce
our
available
borrowing
capacity
under
that
limit,
and
the
answer
is
it
does
not
because
again
it's
not
truly
an
obligation
of
the
city
or
county.
B
It's
just
a
cut
they're
just
a
conduit,
so
it
has
no
impact
on
that
and
finally,
at
the
bottom
of
this
slide
now
the
term
of
these
bonds
is
40
years
for
a
long
time.
It
was
30..
So
the
legislature
two
years
ago
decided
to
make
these
available
for
an
even
longer
period
of
time
and
again,
that's
a
maximum
term.
So
cities
and
counties
may
decide
up.
You
know
I'm
going
to
fence
this
project,
but
I'm
only
going
to
do
it
for
20
years
or
10
years.
Everything
is
negotiable.
B
Okay,
so
how
does
the
abatement
work
so?
Basically,
what
we
do
in
the
bond
issue
is
we
we
separate
the
the
different
interests
in
an
asset
to
obtain
different
tax
treatments.
So
you
know,
if
I
own
it,
I
own
a
piece
of
property.
I
have
title
to
it
and
I
also
have
the
right
to
use
it.
If
I
lease
it
to
someone
else,
I
have
title
to
it,
but
someone
else
has
the
right
to
use
it.
B
I've
shifted
that
that
piece
of
the
overall
bundle
of
sticks
on
property
ownership
to
someone
else
in
the
bond
structure.
What
we
do
is
we
transfer
title
ownership
of
the
assets
to
the
city
or
county,
that's
going
to
issue
those
bonds,
and
then
they
lease
the
asset
back
to
the
company
and
under
kentucky
property
tax
law
that
creates
two
taxable
potentially
taxable
interest
in
the
property.
One
is
the
fee
title
and
the
other
is
the
leasehold
fee.
B
Title
is
owned
by
the
city
or
county
company
retains
the
leasehold,
and
we
have
statutes
that
say
that,
in
the
context
of
a
bond
issue,
we
have
specific
rules
on
how
those
are
going
to
be
treated.
For
state
and
local
property
tax
purposes,
so
on
this
page
we
we
quote
from
103
0.285,
that's
a
statute
within
the
bond
statutes
and
it
it
basically
says
all
properties,
real
and
personal,
which
a
city
or
county
acquires
to
be
rented
to
an
industrial
concern.
B
Under
these
bond
statutes
is
exempt
from
tax
to
the
same
extent
as
other
pop
property,
public
property
used
for
public
purposes.
So
jennifer
hayes
a
few.
I
guess
a
couple
meetings
ago
had
an
overview
of
kentucky's
state
constitutional
provisions
governing
tax
property
tax,
and
one
of
those
provisions
is
section
170,
which
lists
a
bunch
of
different
exemptions,
and
one
of
those
exemptions
is
public
property
used
for
public
purposes.
B
So
the
legislature
and
this
statute
is
simply
confirming
that,
while
the
city
or
county
owns
that
asset,
it's
taxed
just
like
all
other
public
property-
and
that
is
it's
not
tax.
It's
exempt
so
the
fee
title.
The
ownership
to
those
assets
under
a
bond
issue
is
not
subject
to
state
or
local
property
tax
during
the
term
of
the
bonds.
B
The
company's
leasehold
interest
in
those
assets
is
taxed
in
kind
of
an
unusual
fashion,
so
we
do
have
some
statutes
that
basically
say
in
kentucky.
If,
if
I,
if
I
lease
an
if
I'm
a
private
business
private
person-
and
I
lease
an
asset
from
an
otherwise
tax-exempt
entity,
whether
that's
the
government
might
be
a
charity.
B
B
What
the
legislature
has
said
is
that
we're
going
to
carve
leasehold
interests
and
bonds
out
we're
gonna,
give
them
special
treatment
and
basically,
in
a
series
of
statutes,
we
have
provided
that
that
leasehold
interest
is
completely
exempt
from
local
property
tax.
So,
during
the
term
of
the
bonds
the
fee
title
interest
is
exempt,
and
the
company
which
has
a
leasehold
interest,
doesn't
owe
any
property
tax
to
any
local
government
in
kentucky
local,
including
schools.
It's
exempt
for
state
property
tax
purposes,
the
rules
sort
of
change
over
time
originally
automatically.
B
When
you
set
up
your
bond
issue,
the
leasehold
interest
was
subject
to
state
tax
at
a
really
really
low
rate,
1.5
cents
per
hundred
back
in
2002.
The
legislature
decided
we
want
to
have
some
oversight
over
that
process,
because
you
have
cities
and
counties
issuing
bonds
and
impacting
the
state's
revenue
stream.
By
doing
so
so
in
2002,
the
legislature
changed
the
statute
to
say
in
order
for
the
the
state
rate
to
be
reduced,
kedfa
has
to
approve
it.
So
since
2002
we
have
this
application
process,
so
we
go
to
the
city
and
county.
B
They
issue
the
bonds.
We
automatically
get
the
local
exemption.
The
fee
title
ownership
interest
in
the
assets
automatically
exempt
from
state
property
tax,
but
the
company's
leasehold
interest
is
subject
to
regular
property
tax
rates
at
the
state
level.
Only
unless
we
file
an
application
and
ketf
approves
it
and
then
the
rate
is
reduced
down
to
a
cent
and
a
half.
B
So,
at
the
end
of
the
end
of
the
day,
in
the
best
of
all
worlds,
the
bonds
provide
the
company
an
up
to
40-year
abatement
of
property
taxes
on
the
assets
that
are
financed
by
the
bonds
and
held
by
the
city
or
county,
and
instead
of
paying
full
state
and
local
property
taxes
on
those
assets,
the
company
is
paying
a
very
low
state-only
property
tax
rate,
and
that's
why
it's
so
beneficial
and
companies
want
it.
B
It's
an
incentive
just
like
going
and
getting
kbr
or
kia
incentives,
it's
a
temporary
abatement
and
it's
something
that
cities
and
counties
can
offer
businesses
as
an
incentive
for
them
to
locate
in
their
county
as
opposed
to
locate
another
state
somewhere
else.
It's
just
another
part
another
arrow
in
the
quiver
of
economic
development,
but
what's
a
little
bit
unique,
is
it's
something
that's
totally
locally
controlled,
so
the
city
or
the
county
has
the
discretion
to
decide
whether
they
want
to
offer
it
okay.
B
So
let's
talk
about
the
process,
I
thought
here
since
we
are
talking
about
distilleries.
It
might
be
good
just
to
walk,
walk
through
a
distillery
example
or
barrel
warehouses.
So
the
only
real
procedural
provision
in
the
bond
statutes
is
keras
103.210,
which
is
quoted
at
the
top
of
this
page,
says
that
before
you
can
issue
bonds
and
borrow
money,
the
city
or
county,
the
issuer
has
to
adopt
an
ordinance,
a
resolution
that
has
to
basically
explain
to
the
public.
What's
the
undertaking?
What's
the
project
that's
being
considered
for
the
jurisdiction?
B
What's
the
maximum
amount
of
bonds
that
are
going
to
be
outstanding?
What's
the
maximum
interest
rate
on
these
bonds,
so
we
call
that
we
call
that
the
bond
ordinance.
It
says
here
bond
inducement
resolution,
but
we're
getting
a
little
ahead
of
ourselves,
but
basically
you
have
to
adopt
an
ordinance
or
a
resolution
with
all
these
things
in
it
has
to
be
published.
B
Only
then
under
the
statute,
can
you
issue
these
bonds?
So
that's
the
statutory
requirement.
The
practical
side
of
this
is
in
pretty
much
every
one
of
these.
These
bond
issues
that
we're
involved
in
what
happens
is
our
client
comes
to
us
and
says
we're
considering
a
project
in
somewhere
in
kentucky,
perhaps
or
in
multiple
city.
You
know
kentucky
and
surrounding
states
and
what
what
incentives
are
available
and
one
of
the
incentives
we'll
look
at
is
industrial
revenue
bonds.
B
One
of
the
things
we'll
look
at
is:
let's
consider
industrial
revenue,
bonds
and
sort
of
step,
one
which
we
do
at
the
same
time
we're
reaching
out
to
the
cabinet
for
economic
development.
So
we'll
reach
out
to
the
mayor,
the
county
judge.
Typically
the
city
attorney
and
the
county
attorney
and
begin
discussions
about
an
industrial
revenue
bond
really
step.
One
is
we
have
to
get
a
resolution
so
at
the
same
time
that
kedford's
making
its
announcement
for
the
project
we're
getting
a
city
council
or
a
fiscal
court
to
adopt
a
resolution.
B
B
B
Well
for
certain
types
of
bonds,
you
have
to
get
it
and
that's
really
driven
by
federal
income
tax
law
not
relevant
here,
but
we
like
to
get
it
because
we
want
to
show-
and
certainly
city
and
county,
want
to
show
that
they
took
action
that
caused
this
company
to
undertake
its
project.
You
know
they
were
at
the
table
and
they
agreed
to
offer
this
in
order
to
get
the
company
to
make
its
investment
in
their
jurisdiction,
just
like
any
other
economic
development
incentive.
B
So
we
get
that
resolution
and
then
timing
can
work
a
bunch
of
different
ways
but
kind
of
the
simplest
way
to
do
it
is
the
company
then
buys
its
land
builds?
Its
distillery
builds
its
warehouses,
so
once
it's
kind
of
ready
to
put
the
project
in
service,
we
then
go
back
to
the
city
or
county
city
council,
fiscal
court,
and
we
say:
okay,
you
know
we
we
did
what
we
said.
We
were
going
to
do
we're
ready
to
issue
the
bonds.
B
So
at
that
point
in
time,
then
the
city
or
county
complies
with
this
statute
and
adopts
the
bond
ordinance
and
the
bond
ordinance
is
the
kind
of
formal
document
that
says
we're.
We,
the
city
council,
the
fiscal
court,
are
authorizing
this
borrowing,
we're
authorizing
the
sale
of
the
bonds,
we're
going
to
set
a
maximum
cap
on
the
interest
rate,
set
the
amount
and
specify
the
project
and
then
critically
we're
going
to
approve
the
execution
of
all
the
bond
documents.
B
So,
if
anybody's
been
through
a
bond
issue,
they're
horribly
paper-intensive,
there's
lots
and
lots
of
documents,
so
that's
all
kind
of
being
done
in
the
background
by
bond
council,
but
that
city
or
county
action
authorizes
the
sale
of
bonds.
Once
that's
done,
we
have
a
closing
like
an
indiana
loan
transaction
where
you're
going
to
get
funded
and,
at
the
closing
a
whole
bunch
of
things
happen
at
once
and
they're
all
listed
here
on
page
10.
B
But
basically
we
need
to
set
up
this
bond
structure
which
the
statutes
say
we
have
to
have
in
order
to
get
this
property
tax
abatement.
So
the
company
who's
already
bought
these
assets
probably
had
construction
financing
during
the
term
before
the
bonds
are
issued,
they're
going
to
transfer
the
the
real
estate
and
the
equipment
that
are
going
to
be
financed
by
the
bonds
to
the
city
or
county,
so
we'll
have
a
deed
and
we'll
have
a
bill
of
sale.
B
The
city
or
county
wants
to
get
title.
They'll
sign
a
lease
agreement,
leasing
those
assets
back
to
the
company
during
the
term
of
the
bonds,
those
those
two
doc.
The
deed
and
the
lease
agreement
are
recorded
with
the
county
clerk
like
all
their
real
estate
records,
and
then
the
bonds
are
sold.
So
we
may
have
a
bank
that
buys
them.
B
We
may
market
them
out
in
the
public
with
an
underwriter
or
a
lot
of
times
on
these
we
may
have
an
affiliate
of
the
company
buy
the
bonds.
They'll
borrow
it
from
their
parent
company
through
the
context
of
having
the
parent
company,
buy
the
bonds
to
finance
the
project,
either
way,
there's
a
funding,
and
so
that
amount
is
then
paid
to
the
company
and
the
company
uses
that
to
pay
off
its
construction
loan,
perhaps
or
just
reimburse
itself
for
all
the
costs
of
the
construction,
and
so
once
we're
done
with
that.
B
We,
the
bond
structure,
is
in
place
and
then
over
that
up
to
40
year
period,
the
company
is
going
to
be
making
lease
payments
and
those
lease
payments
are
going
to
equal
the
amounts
that
are
due
for
the
periodic
payments
on
the
bonds
annually.
Typically,
the
money
doesn't
flow
through
local
government.
It
either
is
paid
directly
between
the
two,
the
the
company
and
the
bondholder,
or,
if
there's
a
bond
indenturer,
we
may
have
a
bank
in
the
middle
that
serves
as
a
a
trustee.
B
Those
funds
will
flow
through
through
that
institution,
but
there
is
no.
The
county
doesn't.
Is
even
though
they
are
the
conduit
they're
not
receiving
these
flows
of
funds,
and
so
that's
the
structure
during
the
term
of
the
bonds
and
then
after
the
bonds
are
paid
off
and
terminate
the
abatement
ends.
So
kentucky
law
and
there's
a
bunch
of
cases
that
have
been
litigated
on
this
in
kentucky.
In
order
for
the
abatement
to
apply
the
assets
have
to
be
financed,
meaning
the
debt
has
to
be
outstanding.
B
So
as
soon
as
you
pay
off
the
bonds,
it
becomes
fully
taxable,
even
if
the
city
or
county
still
owns
it,
but
typically
it
all
happens.
At
the
same
time,
we
paid
off
the
bonds
we'll
make
we'll
have
some
provision
in
the
lease
agreement
for
some
nominal
payments
to
be
made
by
the
company
at
that
point
in
time
to
the
city
or
county,
and
then
they'll
convey
they'll,
do
a
deed
or
a
bill
of
sale
or
both
conveying
title
to
the
assets
back
to
the
company.
B
So
the
next
couple
pages
here
I'll
just
quickly
go
through.
These
are
just
graphical
representations
of
each
of
these
steps.
So
you
know
the
most
complicated
step
is
the
closing.
So
here
we've
got
the
city
or
county.
Is
the
issuer
on
this
sheet,
the
bond
purchases
who's,
providing
the
funding
buying
the
bonds
company's
going
to
transfer
a
title?
It's
going
to
lease
it
back.
B
The
city
of
county
is
going
to
sell
the
bonds
to
the
bond
purchaser
and
the
bond
purchaser
is
going
to
pay
the
cost
the
purchase
price
to
the
company
to
reimburse
for
the
cost
of
the
project,
and
then
we
have
our
annual
payments
between
the
company
and
the
bond
purchaser,
lease
payments
and
bond
payments
which
match
and
then
finally,
at
maturity,
bonds
are
paid
off
entitled
to
the
project
reverts
to
the
company.
B
Now
the
last
part
of
this
relates
to
how's
this
administered.
So
kentucky
has
a
system
in
place
to
deal
with.
If
we're
going
to
offer
this
incentive,
we
have
to
have
ways
to
report
all
this
properly
value
it
properly
tax
it
just
like.
We
do
for
regular
assets
under
the
regular
property
tax.
So
mechanically
what
happens,
and
typically
we
we
will
work
with
the
pvas
when
we
do
one
of
these
to
make
sure
they've
got
all
the
information
they
need
know
how
this
is
going
to
work
know
how
much
money's
been
spent.
B
How
much
has
been
drawn
on
the
bonds?
But
basically
you
know
if
we're
talking
about
real
estate,
when
the
company,
at
the
closing
transfers
title
to
the
city
or
county
with
the
deed,
the
d
gets
recorded.
B
Kentucky
has
a
statute
that
says
a
copy
of
all
deeds
recorded
with
the
county
clerk
gets
sent
to
the
pva,
so
the
pva
gets
a
copy
of
that
deed
sees
now.
The
title
is
going
to
be
held
by
a
governmental
entity,
will
code
that
property
as
non-taxable
exempt
governmental
property
takes
it
off
the
city
and
county
tax
rolls
in
our
experience.
What
most
pvas
will
do
is
they'll
also
create
a
new
parcel,
that's
the
leasehold,
so
the
company
does
have
a
taxable
leasehold
interest
during
the
term
of
the
bonds
and
so
on.
B
Kentucky
law
requires
that
all
property
that
subject
property
tax
has
to
be
listed,
so
the
listing
is
done
in
two
ways
when
we
record
the
lease
agreement,
which
has
to
be
recorded,
we
list
the
company's
taxable
leasehold
interests
and
all
the
machinery
and
equipment,
the
tangible,
personal
property.
The
department
of
revenue
has
provided
a
schedule
on
the
the
annual
tangible,
personal
property
tax
return
where
you
can
report
bond
financed
assets
for
distilleries.
B
That's
true
as
well
so
same
thing
for
the
land
and
the
building.
The
one
variable
with
distilleries
is
some
distilleries
apparently,
and
some
of
their
bond
issues
have
included
barrels,
so
not
not
the
liquid
inside
the
barrel,
but
the
container,
because
the
liquids
inventory,
the
container
is
a
depreciable
asset,
so
it
can
be
financed
so
on
the
distilled
spirits
tax
return.
B
There
is
a
mechanism
for
distilleries
to
report
barrels
that
have
been
financed
under
a
an
industrial
revenue
bond,
but
at
the
end
of
the
day,
the
the
the
juice
the
distillate
is
fully
taxable
and
bonds.
Don't
impact
that
in
any
way
and
that
really
that's
the
bulk
of
the
value
that's
taxed
under
the
distilled
spirits
tax.
B
Okay,
a
few
other
considerations.
Pilots
pilot
is
a
a
payment
in
lieu
of
tax.
You
won't
find
anything
about
it
in
the
statutes
and
basically
it
it's
just
it's
something
that
can
be
negotiated
as
part
of
a
bond
issue.
It's
a
contractually
required
payment
stream.
B
So
we
want
you
to
enter
into
a
pilot
agreement
when
the
bonds
are
issued
that
require
x
payments,
whether
it's
to
the
city,
the
county
may
go
to
a
fire
district
if
there's
special
fire
needs
or
a
lot
of
times
to
the
school
district
during
the
term
of
the
bond,
so
that
becomes
one
of
the
bond
documents
that
are
executed
at
closing.
But
you
know
critically,
it's
you
know
it's
it's
a
variable.
It's
all
over
the
place.
It's
whatever
is
negotiated,
it's
whatever
the
issuer
wants
to
require.
B
So
that's
just
a
consideration
that
comes
into
play
and
then
finally
ked
for
approval
again
2002.
The
legislature
gave
kedfa
part
of
the
process
here
so
before
a
city
or
county
by
issuing
a
bond
is
going
to
impact
the
state
property
tax
revenue
stream.
Kedfa
has
to
weigh
in
and
approve
it.
So
a
city
or
county
can't
just
issue
bonds
and
give
away
basically
or
abate
state
property
taxes
without
ketfa's
approval
and
there's
an
application
process
for
that.
B
Just
like
their
other
incentive
programs.
They
can
look
at
jobs,
wages,
capital
investment
where
the
project's
located
you
know,
what's
the
county
unemployment
rate,
those
all
go
into
play
and
then
kind
of
most
critical
for
a
lot
of
projects
we
work
on,
they
do
have
some
hard
and
fast
rules
on
pilot
payments.
B
So
if
you
want
to
go
to
the
state,
want
you
want
to
go
to
kedpha
and
get
approval
for
the
state
rate
reduction.
Kevin's
current
policy
is
that
the
company
has
to
agree
to
a
full
school
pilot
agreement
as
part
of
the
the
issuance.
So
that
means
basically
that,
even
though
we're
going
to
remove
the
assets
from
the
local
tax
roll,
the
company
has
to
agree
that
it
will
pay
the
same
amount
it
otherwise
would
have
paid
to
the
school
district
annually.
B
If
the
bonds
hadn't
been
issued
as
a
condition
for
ked
folk
agreeing
to
the
state
rate
reduction,
and
then
they
have
some
other
policies,
that
basically
say
if
there's
some
other
pilots
beyond
the
schools
that
are
required
by
the
issuer,
the
state's
going
to
match
that.
So
if
the
city
is
issuing
the
bonds
and
the
city
says,
we
want
you
to
pay
us
a
50
percent
pilot
kevin's,
going
to
require
a
50
state
pilot
to
match
that.
B
So
there
are
some
kind
of
guard
rails
on
the
ability
of
cities
or
counties
to
impact
state
revenues
with
these
bonds,
and
that's
basically
it
in
a
nutshell.
I'm
happy
to
answer
any
questions.
E
Yeah,
I
want
to
just
try
to
walk
through
this
in
a
non-lawyer
way
and
I'm
gonna
use
jim
beam
in
my
hometown.
E
So
there's
500
acres
that
jim
beam
wants
to
come
to
manchester
kentucky
and
what
happens
there?
Is
the
city
buys
the
property
from
chad?
Mccoy?
I'm
glad
to
know
you
had
a
draft
bill
that
you
didn't
show
me
we're
just
joking,
so
the
city
buys
it
for
2
million
dollars
and
then
jim
beam
walks
in
and
spends
8
million
building,
rick
houses
and
distilleries.
E
So
the
overall
bond
issue
is
10
million
dollars
that
the
city
which
doesn't
go
against
their
bonding
capacity,
has
basically
bought
the
property
built
the
rick
houses
and
the
distillery
and
for
eight
hundred
thousand
dollars
a
year
over
the
next
20
years.
That
beam
will
pay
them
that
will
retire
their
debt
issue.
E
At
that
point
in
time
there
would
be
some
type
of
nominal
hundred
thousand
dollars
d
transacted
city
of
manchester
deeds
it
to
jim
b
and
they
own
it.
But
for
that
20-year
period,
because
it
is
a
governmental
entity
under
170
in
the
constitution,
it's
a
non-taxable
piece
of
property
for
the
realty
and
added
value
of
the
construction,
and
that's
where
the
distillery
or
the
company
gets
its
tax.
E
Excuse
me
tax
advantage
on
this
type
of
transaction,
but
if
you
have
what
you
called,
what
was
it
just
then,
the
last
term
you
used
pilot.
E
B
That's
exactly
right,
yeah,
and
so
the
key
you
know
remember
we're
talking
about
the
the
delta
right,
the
margins
here.
So
if,
if
a
company's
already
there,
if
the
salary
is
already
there
and
their
property's
on
the
tax
roll
there,
that
asset
remains,
it
continues
to
be
taxed,
we're
not
impacting
that
revenue
extreme,
we're
basically
saying
if
the
company's
going
to
spend
you
know
10
million
dollars
to
expand.
These
are
things
that
are
not
in
the
current
tax
base
currently,
and
we
would
like,
as
an
induced,
a
temporary
exemption
on
those
assets.
I've.
E
D
E
B
B
D
B
B
D
Okay
and
on
these,
our
irbs
and
and
all
that
goes
into
they're,
legally
binding
for
the
length
for
the
term
of
the
bond
on
both
parties.
Is
there
escape
clauses
in
there
for
any
reasons.
B
Well,
so
you,
you
know
it's
a
contract,
so
you
can
negotiate
anything
like.
We
have
seen
things
in
the
past,
where
not
really
for
distillers,
but
sometimes
we'll
see
new
industries
where
the
issuer
might
put
an
obligation
there
that
if
you
know
if,
if
the
company
vacates
the
location
we're
going
to
terminate
the
bonds
we
have,
the
city
has
an
option.
It's
kind
of
a
protection
for
the
city
or
the
county.
B
The
company
will
often
have
a
right
to
terminate
the
bond,
so
the
bond
documents
will
provide
a
right
for
the
company
to
pay
off
the
bonds
at
any
time
and
once
they
pay
off
the
bonds
they
automatically
will
terminate.
So
the
company
certainly
has
that
right,
but
otherwise
that's
kind
of
the
universe
of
what
we
see
on
things
like
that.
D
Okay,
then,
on
the
pilots
on
that
last
slide,
it
talked
about
that
kitva
requires
state
pilots
to
match.
Pilots
paid
to
other
local
taxing
districts.
Now
is
that
a
revenue
for
the
state
or
liability
for
the
state?
I
I
really
I'm
having
a
I'm
having
trouble
following
you
on
that.
One
sure.
B
So
when
the
bonds
are
issued,
let
me
put
this
way
so
kenpo
will
agree
to
the
state
rate
reduction
if
there's
a
full
school
pilot.
So
we'll
take
so
let's
say
it's:
you
know
for
regular,
tangible,
personal
property,
the
state
rate
is
is
45
cents
per
hundred.
B
B
However,
if
you
also
are
required
you,
the
company
are
also
required
to
make
some
pilot
payment
to
somebody
else,
whether
it's
the
issue
or
the
city
or
the
county
or
might
be
to
a
fire
district.
If
there's
some
other
district
getting
some
payment,
then
kedfo
will
match
it.
So
kefa
reduces
the
rate
to
a
second
half.
But
let's
say
we,
we
had
a
a
fire
district
that
we
agreed
to
make
a
50
pilot
to
they.
B
Kepha
would
require
the
company
to
enter
into
a
pilot
agreement
with
the
state
to
pay
additional
revenues
to
the
state
to
raise
that
back
up
to
the
equivalent
of
50
percent
of
the
otherwise
available
rate.
The
45
cent
rate,
because
it
automatically
goes
to
a
second
half
so
for
the
for
the
state
to
get
more
money
back
after
they've
reduced
the
rate.
They
do
it
through
a
separate
pilot
agreement
with
the
department
of
revenue.
D
And
thank
you
and,
mr
chairman,
if
you
don't
mind
that
you
recognized
some
of
your
folks,
I
have
a
a
looking
looking
out
in
the
audience
a
lot
of
folks
very
interested
in
this
issue
from
from
my
district,
and
I
just
want
to
thank
them
all
for
attending
today.
Thank
you,
mr
chairman.
F
B
No,
the
south
carolina
and
georgia,
I
know,
have
virtually
identical
structures.
Tennessee
does
something
similar
that
where
there's
basically
title
is
sort
of
parked
with
cities
and
counties
to
provide
a
local
property
tax
abatement.
There
are
a
lot
of
southern
states
that
have
a
similar
structure.
F
Okay,
thank
you.
Secondly,
can
the
commonwealth
itself
issue
conduit
bonds.
F
Obviously
they
wouldn't
be
go
bonds
correct,
because
we
can't
do
that.
But
if
an
organization,
a
company
defaults
on
the
payments
of
the
bonds,
you
mentioned
that
there's
no
recourse
to
the
issuer,
but
in
the
event
of
a
default.
Does
that
in
any
way
negatively
impact
the
rating
of
that
issue
or
in
the
future
when
it,
when
they
take
a
future
irb
to
sale?.
B
B
They
know
that
the
sole
source
of
repayment
that
was
pledged
is
the
revenue
stream
of
the
company,
so
the
city
or
the
county
is
not
offering
anything
as
collateral
for
the
repayment
so
based
on
that
it
shouldn't
have
any
impact
on
the
city
or
county
on
its
ability
to
borrow.
You
know,
for
example,
go
bonds,
but.
F
B
So
in
a
future
bond
issue,
they're
going
to
look
at
whoever
it
is
who's,
the
ultimate
company
there
who's,
providing
that
that
revenue
stream-
and
they
may
say
you
know,
we
don't
think
that
companies
credit
worthy.
We
want
some
kind
of
credit
enhancement.
We
may
want
to
letter
credits,
bond
insurance,
things
like
that,
but
those
all
relate
to
the
creditworthiness
of
the
private
user.
The
company,
not
not
the
issuer,.
A
A
A
The
the
juice,
the
the
barrels
is,
the
bourbon
barrel
tax
still
being
collected,
though.
B
B
So
if
that's
the
case,
that
means
the
container
would
be
exempt
just
like
the
other
assets,
but
the
juice
itself,
which
is
the
bulk
of
the
value
that
subbied
attacks
under
the
barrel.
Tax
is
not
part
of
the
bond
issue
and
it's
still
fully
taxable.
A
So
so,
during
the
30
years
or
40
years,
the
counties
are
still
collecting.
All
the
local
taxing
districts
are
still
collecting.
The
schools
are
still
getting
all
of
the
barrel
tax,
correct,
okay,
and
this
is
obviously
a
voluntary
thing.
Nobody
has
to
do
one
of
these
right
correct,
so
so,
what's
the
upside
to
a
city
or
a
county
to
do
one
of
these,
knowing
that
they're
going
to
be
giving
up
the
real
property
tax
over
the
time
period,.
B
Sure
so
there
are
a
lot
of
lots
of
things
that
go
into
that
analysis.
It's
really
no
different
than
what
what
ketfa
looks
at
for
projects.
So
obviously
we
want
economic
development
in
the
state.
You
know
we
want
growth
and
so
we're
with
our
state
programs
and
with
this
program,
we're
willing
sometimes
to
offer
incentives
to
get
somebody
to
make
that
investment
realize
we're
giving
up
something
early
on,
but
we're
going
to
get
it
in
return.
B
So
you
know,
part
of
the
analysis
is,
if
you
make
you
know,
let's
say
for
a
lot
of
these
distillery
projects,
we're
talking
hundreds
of
millions
of
dollars
if
you're
going
to
make
100
million
dollar
investment
in
my
community
40
years
from
now
that
investment's
still
going
to
be
there
and
I've
got
you
and
I've
got
all
these
new
jobs
you've
created.
So
there's
that
and
there's
a
ripple
effect
in
the
local
economy.
There
are
some
other
revenue
streams
that
local
government
does
get.
B
If
you
have
an
occupational
tax
in
the
jurisdiction,
you've
got
the
wages
during
the
construction
phase,
usually
in
every
project.
There's
a
big
kind
of.
If
you
look
at
it
on
a
graph
there's
a
big
bump
at
the
very
beginning
of
these,
where
you've
got
all
this
construction
labor.
So
during
the
construction
phase,
these
companies
are
hiring
general
contractors
bringing
folks
in
those
workers
while
they're
working
there.
B
If
you
have
an
occupational
tax
you're
going
to
see
quite
a
bit
of
additional
revenue
during
the
construction
phase
and
then
once
that's
over
the
new
jobs
created
are
subject
to
that.
Local
occupational
tax
you've
got
that
wage
stream.
You've
got
insurance
premiums,
taxes,
you
might
have
utility
gross
receipts,
license
taxes
for
the
schools,
so
there's
a
lot
of
other
things
that
go
into
going
to
the
analysis,
and
what
we
find
is
there's
a
lot
of
discussion
about
that.
B
So
when
we
we
bring
up
a
bond
issue,
the
local
government
wants
to
say:
well,
you
know
what
what
are
we
getting
out
of
this?
What
does
this
mean
for
us?
So
we
typically
do
look
at
these
other
revenue
streams
and
and
see
what
they're
going
to
mean
to
local
government.
You
know
sometimes-
and
kentucky
actually
has
a
a
program
for
this
at
the
state
level.
Sometimes
it's
we're
worried
about
this
business,
picking
up
and
moving
somewhere
else,
because
it's
it's
a
lot
cheaper
to
do
business
in
that
jurisdiction
than
here.
B
So
we're
going
to
offer
these
incentives
because
we
want
to
you
know
partner
with
the
business
and
and
keep
those
activities
here
we
want.
We
don't
want
them
to
begin
having
warehouses
and
some
other
jurisdiction,
for
example.
So
you
know,
I
can't
say
it's
one
thing
or
another,
but
all
those
those
factors
kind
of
go
into
the
analysis,
but
at
the
end
of
the
day
you
know
we've
got
our
political
representatives
there
and
they
get
to
make
the
call,
because
we're
not
entitled
to
this.
B
This
is
something
that
the
city
or
the
county
governing
board
has
to
agree
to
do
and
they're
not
required
to
do
it.
A
Are
these
third-party
three
player
contracts?
Is
the
government
entity
signing
on
to
the
bonded
dentures
and
all
the
agreements?
Yes,
in
your
experience,
this
is
not
what's
going
to
happen,
I'm
just
asking
a
hypothetical
question,
but
I
want
to
ask
the
question:
if,
if
tomorrow
the
barrel
tax
went
away,
we
just
jerked
it
out.
Would
that
breach
any
of
the
bond
documents
that
you've
ever
seen?
Would
that
be
some
sort
of
an
exposed
facto
issue
from
a
government
standpoint.
B
No,
no
obviously,
you
know
government
can
contract
its
taxing
authority
and
there's
plenty
of
kentucky
case
law
along
those
lines.
I
can't
just
go
to
local
government
and
say
I
want
you
to
contractually
agree
not
to
charge
this
tax
or
contractually
agree
that
you
will
continue
to
charge
this
tax
in
the
future.
B
The
law
is
what
it
is
on
on
things
like
that,
so
the
bond
issue
kind
of
wraps
around
the
existing
structure,
but
there's
nothing
in
there
that
contractually
obligates
attacks
to
remain
in
place
or
obligates
a
local
government,
let's
say
to
not
levy
attacks,
so
so
it
wouldn't
be
a
breach.
It
might
impact
expectations
and
that's
clearly,
obviously
something
that
this
task
force
is
going
to
consider.
But
but
legally
there
would
be
no
prohibition
on
a
change
in
the
law
like
that.
F
B
F
F
B
B
On
property,
tax
abatement
bonds,
I
think
it's
pretty
common.
It's
fairly
common.
D
B
Yeah,
so
you
know
as
far
as
required,
it's
kind
of
all
over
the
place,
because
every
every
project
is
different.
Everything
is
negotiable.
It's
not
unusual
to
have
a
pilot
agreement
and
it's
not
unusual
to
have
some
payment
stream.
It
seems
like
to
school
districts
that
seems
to
be
a
fairly
frequent
requirement
and
how
much
that
is
and
how
it's
calculated
is
kind
of
different
for
every
jurisdiction.
B
Typically,
if
you
have
a
pilot
agreement,
their
annual
payments,
they
kind
of
mirror
when
the
property
taxes
would
have
normally
been
paid.
So
so,
typically,
if
you
have
a
pilot
obligation,
it's
either
being
paid
to
the
issuer
or
it
might
be
paid
to
the
school
district,
and
it's
paid
right
about
the
same
time
that
property
tax
payments
are
due.
A
All
right,
seeing
no
other
questions,
you're
temporarily
excused,
subject
to
recall,
but
I
appreciate
what
you've
thank.
You
testified
to
up
here.
Next
up.
Item
number:
four
on
the
agenda:
discussion
of
county
concerns,
mr
henderson
and
mr
summers.
Please
come
on
up.
G
Good
morning,
jim
henderson,
with
the
kentucky
association
of
counties
and
I'll,
also
introduce
one
of
our
policy
people
on
staff,
kayla
carter
who's
here
to
help
a
little
bit
if
needed,
on
the
technology
and
maybe
questions
so
judge
summers.
C
He
was
unmatched
with
this
community
service
that
separates
jerry
summers
from
the
rest
of
the
industry.
So
this
is
why
I'm
here
today,
I'd
like
to
chat
with
y'all
for
a
few
minutes
about
kayla.
If
you'd
show
the
first
slide
please,
this
is
the
revenue
impact
just
in
bullitt,
county
alone
on
our
department
of
revenue
was
wasn't
real
forthcoming
about
how
many
barrels
exactly
jim
beam
and
four
roses
has,
and
when
I
was
in
the
industry,
I
had.
C
C
It
was
360
000
to
a
fire
department,
absolutely
across
the
street,
and
if
the
ad
valorem
tax
isn't
piloted
or
subsidized
that
fire
district
will
go
away.
It's
a
class
four
out
of
when
you
go
through
one
through
ten
fire
protection.
You
can
see
in
our
fiscal
court
we're
the
next
largest
recipient
of
it
and
to
help
you
with
that
revenue
that
we
received
from
that
last
year
alone
to
repair
the
roads
for
the
construction
for
the
distilleries
in
our
community.
C
We
spent
close
to
350
thousand
dollars
out
of
our
general
fund
to
reconstruct
the
county,
roads
and
again,
a
state
road
right
now
will
need
the
same
type
of
reconstruction
again
as
it
was
literally
a
year
ago
from
the
construction
of
bourbon
warehouses
we'll
bounce
down
into
here
that
on
our
tax
revenue,
we're
expected
to
double
by
2026,
because
when
you
look
at
the
expansion
of
four
roses,
you're
talking,
24
000
barrels
in
17,
warehouses
and
jim
beam
with
another
15
averaging
from
50
to
58
000
barrels
apiece.
C
C
This
is
strictly
a
local
tax,
a
tax
to
support
this
industry
and
our
community,
a
community
that
has
given
back.
We
have
no
occupational
tax
on
the
insurance
premium
surcharge.
These
companies
are
foreign
held
they're
self-insured,
so
we
get
no
revenue
from
that
either
we
have
no
licensing
fee
for
their
cocktails
or
their
visitor
experiences.
C
We
have
to
provide
emergency
services
to
them
quite
frequently,
because
the
amount
of
land
that
they
do
own
and
across
the
street
from
bernheim
forest,
so
we're
where
we
are
at
with
this.
I
I
sit
here
and
I
firmly
believe
that
this
would
be
an
undue
burden
on
my
85
000
residents
in
my
community
to
be
able
to
have
to
subsidize
an
industry,
that's
doing
so
well,
whether
it's
to
make
things
neutral
or
whole
or
even
giving
it
up
one
way
or
the
other.
C
I
would
like
to
talk
about
to
answer
some.
If
I
can
chairman
some
of
your
questions
about
pilot
programs
and
industrial
revenue
bonds,
which
I'm
familiar
with,
I
want
you
to
take
a
look
at
this.
This
is
how
many
revenue,
bonds
and
the
value
of
them
it's
been
issued
to
the
industry
that
we
have
to
date.
C
My
colleagues
are
here
from
both
nelson
and
marion
counties
as
well,
and
this
affects
not
only
our
communities,
but
this
is
what
communities
have
done
to
support
this
industry
to
keep
it
here
in
kentucky
to
keep
it
viable
and
moving
forward
as
we
should,
and
when
you
talk
about
the
28
million
or
whatever
acronym
the
dollars
that
you
all
are
putting
on
this
all
the
way
around
to
subsidize.
It's
not
about
that.
It's
about
the
investment
that
we
have
made
as
communities
for
the
future
growth
to
come
back
to
us.
C
C
C
We
haven't
seen
that
until
this
last
year,
so
this
is
this
is
where
we
stand
with
it.
I
have
quite
a
few
colleagues
here
who
have
done
the
same
thing:
they've
given
up
their
industrial
parks,
reduced
rates
to
make
this
industry
whole
and
we're
not
here
to
hurt
this
industry
we're
here
to
let
you
know
that
we
have
worked
with
them
hand
in
hand
to
keep
them
viable,
to
keep
them
moving
forward
and
to
be
a
big
part
of
kentucky
and
to
make
it
truly
a
signature
industry.
C
But
to
me
this
is
a
pittance.
You
know.
If
a
fifteen
thousand
barrel
liquor
is
going
to
go
down
to
ten
thousand
dollars.
That
would
be
pretty
cool,
but
I
don't
see
this
happening
because
most
of
these
companies
are
held
by
companies
that
are
in
italy,
france,
great
britain,
canada,
private
investment
firms.
C
So
I
don't
see
the
revenue
stream
coming
back
for
opportunities
here
in
this
in
in
our
state,
and
I'm
going
to
leave
that
at
that,
because
I
could
sit
here
and
talk
about
this
industry
for
40
years,
because
I
have
been
in
it
that
long
and
longer
than
that
as
well
because
of
my
family
and
what
they
had
invested
in
moving
from
american
tobacco
to
jim
beam.
C
So
I'll
be
happy
to
entertain
any
type
of
questions
or
an
educational
process
on
this
in
the
industry.
I'm
disappointed
that
eric
gregory's,
not
here
today
or
some
of
the
others.
I
see
they've-
got
all
their
lobbyists
here,
but
I
would
like
to
chat
with
them
and-
and
please
take
what
I'm
saying
in
the
right
way
we're
here
to
help
this
industry.
F
Judge,
first
of
all,
thank
you
for
being
here.
Secondly,
on
your
number
on
slide:
three,
there
total
financial
incentive.
That's
the
bond
amount.
Correct!
Yes,
do
you
know
the
corresponding
annual
unrealized
property
tax
revenue
by
county.
C
Sure,
well,
I
can
by
our
county.
I
cannot
speak
far
for
nelson
or
marion
county
as
well,
but
I
can
buy
our
county
and
I
don't
have
that
number
with
me.
F
C
F
Because
a
lot
of
times
we
make
decisions
that
you
know
they
flow
downhill
to
an
extent.
F
And
I'm
not
a
fan
of
the
idea
of
some
kind
of
a
hold
harmless
that
hits
the
commonwealth's
general
fund.
So
that
being
said
to
you,
as
a
judge
when
you
and
your
kind
of
commission
decided
to
issue
these
conduit
bonds,
you
made
a
calculation
that,
yes,
we
would
forego
these
property
taxes,
but
and
I'm
assuming
the
companies
emphasized
this
to
you,
there
would
be
a
core.
There
would
be
some
type
of
a
revenue
stream
to
the
county
through
the
bourbon
barrel
tax.
Is
that
accurate.
C
For
clarification,
my
administration
had
no
obligation
to
this
bond.
It
was
done
previously.
C
Yes,
yes
and
yes,
there
is,
and
there
was
and
it's
it
and
the
devil
is
in
the
detail,
with
the
pilot
part
of
it
as
well,
because
it
goes
back
into
the
school
system
to
help
to
keep
them
whole
and
the
in
the
barrels-
and
this
is
what
I'm
so
confused
over.
Why
the
barrel
itself,
the
state
says
it's
personal
property,
where
the
industry
capitalizes
it
and
the
capitalization
of
the
barrel
is
a
that's
a
huge.
C
Let's
put
this
way
when
you're
putting
up
a
million
new
barrels
a
year.
That
is
a
lot
of,
and
that's
just
for
a
company,
that's
not
for
the
entire
commonwealth.
That's
one
heck
of
a
capital
expense
and
for
tax
credits
and
on
the
rb's
as
well.
F
Right,
so
you
would
consider
it
in
the
event
that
this
was
just
unilaterally
wiped
out,
I'm
going
to
to
one
extreme
here.
I
understand.
C
F
Right,
okay,
but
you
would
view
that
as
a
one-sided
slight
of
hand
based
off
of
the
original
irb
issuance
agreement.
Absolutely
thank
you.
D
Just
a
comment
I
was
going
to
share
with
you:
I'm
I'm
sure
I'm
not
covered
under
any
hipaa
laws,
but
eric
gregory
did
share
with
me
that
he
had
covet
and
wouldn't
be
here
today,
so
I
just
wanted
to
since
you
mentioned
him
to
to
throw
that
out
there.
Thank
you.
A
Going
to
bring
that
up,
he
he
had
written
to
me
as
well,
and
I
didn't
want
to
announce
it
without
his
permission,
but
he
he,
since
you
brought
it
up,
wanted
to
make
sure
everybody
understood
just
a
point
of
clarification
on
the
slide.
That's
up
on
the
screen,
and
I
think
chairman
mcdaniel,
asked
this.
I
just
want
to
make
sure
I
understood
it.
The
585
million
total
financial
incentive
of
the
irb,
I'm
just
looking
at
the
top
one
bullitt
county
jim
beam-
is
that
the
amount
of
the
bond
issuance
that's.
A
Okay,
so-
and
if
I
understood
and
tim
correct
this,
if
this
is
wrong,
so
that
was
a
585
million
dollar
loan-
that
the
county
had
zero
recourse
on
was
not
financially
on
the
hook
for
any
part
of
and
really
gave
up
nothing
to
do
that
other
than
the
property
taxes.
So
that's.
What
we
need
to
see
is
what
is
the
amount
of
the
property
tax
over
those
30
or
40
years,
whatever
it
is,.
C
A
A
A
Okay,
I
was
hoping
you'd
come
today
with
it,
but
go
ahead
and
mr
henderson,
if
you
yeah,.
G
And
I
may
touch
on
a
little
bit
of
that.
More
broadly,
so
thank
you
for
having
us
here.
I
I
have
to
write
things
down.
I
don't
have
a
great
internal
clock,
so
a
few
comments
here,
maybe
but
but
I'll
try
to
piggyback
off
of
some
of
the
things
that
judge
summers
said
and
tim
and
judge
summers
has
a
unique
role
here
among
county
officials,
as
maybe
the
only
county
judge
who
spent
their
their
private
career
in
the
bourbon
industry.
G
So
his
perspective
certainly
is
one
that
that
is
different
from
from
having
known
the
inside
of
the
business,
but
I
do
appreciate
you
all
taking
time
to
hear
the
county
voice
today.
The
county
voices
is
different
in
different
places.
You
know,
I've
said
before
here.
Kind
of
a
mantra
of
counties
across
the
country
is
when
you've
seen
one
county
you've
seen
one
county
there.
There
just
are
different
circumstances
in
each
county.
G
I
I
do
also
want
to
make
sure
that
we
don't
miss
something
that
maybe
isn't
so
obvious,
but
I
think
we
all
agree
that
we
really
love
kentucky
bourbon.
Okay,
I
mean
the
counties
that
are
involved
in
the
bourbon
industry.
They
they
have
known
this
this
industry
and
have
lived
this
industry
for
many
dec
decades
and
and
the
bourbon
culture
is,
is
huge
for
kentucky.
G
G
I
think
president
steivers
is
pretty
close
to
right
on
the
signature
industry
definition.
This
is
the
thing
that
people
identify
with
us.
So
again,
I
think
we're
all
interested
in
seeing
kentucky
bourbon
stay
strong
and
remain
a
a
definition
of
who
we
are.
As
kentucky
and
tim
eifler
right,
I
said
yeah
he
actually
did
a
bond
for
us,
the
last
big
project.
G
I
got
to
work
on
in
simpson,
county
with
a
german
automotive
company
that
came
fritz
winter,
about
a
200
million
project
and
when
that
project
got
down
to
a
few
sites-
and
we
were
in
that
hunt
for
about
two
years
and
it
got
down
to
us
and
a
site
in
georgia.
You
know
one
of
the
things
that
really
tipped
the
scales
for
that
industry
to
come
to
kentucky
was
really
our
culture.
I
mean
when
all
things
are
equal.
There
is
something
appealing
about
the
horse
industry
about
the
bourbon
culture
and
it
drives
decision-making.
G
So
again,
I
think
we
all
understand
that
again
counties
have
invested
in
the
bourbon
industry
because
they
believe
in
it
and
it's
good
for
the
county
and
it's
good
for
the
community,
it's
good
for
the
state,
but
you
know
what's
interesting
in
this
conversation
that
it
is
fairly
new.
I
mean
it's
one
that
I've
only
heard
about
more
recently.
G
I
know
other
people
have
said
this
has
been
talked
about
a
lot,
but
you
know
when
I
was
involved
with
local
industry
at
home
and
I
would
say
the
bourbon
counties
would
be
the
same.
You
know
most
of
those
issues
that
came
up
in
terms
of
challenges
on
workforce
or
or
issues
with
taxation
issues
or
impediments
that
they
saw
to
being
successful.
G
Those
first
conversations,
often
time
occurred
with
the
county
officials,
the
industrial
and
development
folks
in
the
counties,
and
we
just
have
not
heard
that-
or
at
least
I
have
not
heard
it
and
county
officials
that
I've
talked
to
haven't
heard.
That
mention
in
the
way
in
which
I
know
it's
been
discussed,
maybe
in
the
in
the
this
task
force
and
even
in
the
last
session,
some
as
being
as
large
as
it's
being
talked
about
today.
G
I
don't
deny
or
doubt
that
it's
of
interest,
but
we
just
have
not
heard
that
in
the
same
way
that
maybe
you
all
have
in
fact
to
to
maybe
the
earlier
questions
about
the
the
irbs
and
things
the
the
contrast
or
the
the
the
the
other
side
of
that
is
actually
the
case
in
many
times
where
that
that
barrel,
tax
is
used
and
talked
about
as
a
part
of
the
reason
in
which
a
county
would
do
an
irb
or
would
decide
to
put
land
on
the
table
or
to
make
infrastructure
improvements
and,
and
recently
those
conversations
have
happened
with
some
of
our
our
county.
G
So
it
seems
odd-
or
I
guess
at
best
confusing
to
to
hear
this.
The
way
we've
heard
it,
and
yet
our
county
officials
haven't
at
least
heard
this
as
a
bigger
concern
at
the
local
level
that
it's
talked
about.
So
so,
let's
look
at
that.
First
slide:
real,
quick
because
the
numbers
I
know
that
we
talked
about
this-
or
it
was
at
least
testified
to
at
the
last
meeting,
just
to
verify
that
the
the
numbers
are
right
and
I
do
think
that
we
all
agree
that
the
numbers
are
right.
G
This
is
the
information
that
came
from
the
first
task
force
that
shows
the
breakout
among
the
counties
in
the
cities,
but
I
do
think
it's
important
to
recognize.
This
is
a
snapshot
I
mean
this
is
a
moment
in
time
and
it
doesn't
really
tell
the
whole
picture,
which
I
think
goes
to.
Some
of
the
questions
that
have
been
asked
is
what
are
the
other
things
that
were
factors?
What
are
the
other
things
yet
to
come
that
are
in
the
pipeline?
G
You
all
know
as
well
that
that
the
the
juice
doesn't
get
taxed
until
a
certain
point.
It
sits
there
for
a
while
and
and
so
in
some
cases,
that's
not
yet
realized
revenue,
but
it's
actually
already
there
in
the
barrel.
So
that's
not
necessarily
reflected
in
these
numbers.
You've
you've
seen
bullitt
county's
numbers.
G
I
want
to
show
you
a
couple
of
counties
just
to
kind
of
put
a
face
on
some
of
these
numbers,
because
you
see
these
numbers
on
a
big
screen
or
a
big
sheet,
and
you
don't
necessarily
see
how
they
impact
a
particular
county
and-
and
I
would
say
that
on
these
specific
county
sheets
just
take
note-
these
are
only
the
county
and
the
political
subdivisions
of
the
county.
It
does
not
include
on
these
sheets,
the
city
or
the
school
numbers,
it's
simply
the
county
and
its
political
subdivisions.
G
So
one
area
that
we
haven't
really
talked
about
much
when
you
look
at
those
sheets
and
those
sheets
do
not
reflect
this
and-
and
you
all
may
know
this,
but
just
quick,
quick,
informational
on
how
some
of
the
county
offices
are
funded.
G
G
If
you
look
at
the
marion
county
number-
and
you
can
see
the
information
on
these
slides,
I'm
not
going
to
read
everything
on
there,
but
again
talking
about
the
irb
issuance
the
county
issuing
682
million
dollars
in
irbs,
specifically
to
provide
that
that
incentive.
G
I
talked
to
the
judge
there
and
you
know:
they've
taken
a
few
hits
in
doing
really
important
things
that
they
believed
was
important
to
help
the
industry
be
successful.
G
Not
everybody
in
the
community
thinks
it's
a
great
idea
and
I've
been
there
when
you
do
issue
irbs
and
you
create
this
perception
that
we're
given
tax
incentives
and
we're
given
tax
abatement
when
when
not
everybody
gets
that
and
and
sometimes
that's
not
always
popular,
especially
in
smaller
counties.
The
judge
there
you
know
on
the
court
took
a
tough
position
and
closed
a
public
road
in
order
to
help
facilitate
the
growth
there
and
it
it.
G
This
and
part
of
that
pitch
part
of
that
selling
point
was
that
it
would
have
the
distilled
spirits
tax
coming
in
to
help
offset
some
of
that
investment,
and
you
can
see
some
of
these
percentages.
I
didn't
read
them
on
the
percentage
of
total
property
tax
income
that
these
mean
for
the
counties.
I
think
the
number
on
marion
was
about
12
or
five
percent
on
it.
G
Nelson
was
like
12
of
the
total
ad
valorem
taxes
that
are
collected,
but
in
henry
county
they're,
expecting
as
much
as
300
000,
which
obviously
today
you're
not
seeing
those
kind
of
numbers,
but
that's
based
on
things
that
are
already
in
the
pipeline,
not
not
hopes
and
prayers.
Not
not.
If
you
do
this,
we
might
on
things
that
are
already
in
the
pipeline
to
develop
so
for
a
county
like
henry
county.
This
would
be
transformative
and
henry
county,
like
bullitt
county,
doesn't
have
an
occupational
tax.
G
Henry
county
doesn't
have
an
insurance
premium
tax,
so
some
of
these
counties
are
heavily
reliant
on
only
the
the
real
estate
property
tax.
G
Let
me
kind
of
bring
it
home
with
the
obvious,
and
I
hope
my
internal
clock's
working
okay
is
that
I
just
think
we
want
to
say
the
obvious,
because
I
just
don't
want
to
get
lost,
and
I
know
chairman
mcdaniel.
I
appreciate
the
role
he
has
in
the
legislature
and
understands
this
as
well
as
anybody.
You
know
if
the
tax
goes
away,
and
I
know
this
is
a
lot
of
hypotheticals
at
this
point.
G
Unless
there's
something
else-
and
I
mean
at
this
point-
and
I
apologize
for
not
thinking
about
coming
today
with
solutions
representative
mccoy-
I
thought
that
conversation
maybe
comes
after
you
hear
from
everybody
on
the
concerns
we'd
be
interested
in
having
those
conversations,
but
obviously
the
the
simple
solution
for
us
is:
let's,
don't,
let's
don't
bother
this
tax?
This
is
a
tax
that
many
counties
made
decisions
about.
Hopefully
the
industry
made
the
decisions
knowing
it
was.
There
was
no
expectation,
it
wasn't.
G
At
least
that
was
the
the
expectation
at
the
time,
and
so,
if
there
are
other
ways
to
deal
with
that,
that's
totally
your
all's
call
not
as
much
hours,
but
it
does
create
holes
in
our
budgets
if
it
goes
away
at
this
point-
and
the
simple
question
is
who
makes
that
up,
I
mean
chairman
mcdown,
you
said,
and
I
completely
understand-
that's
not
a
hole
that
that
you
would
want
to
make
up
at
the
state
level.
G
I
never
really
fully
felt
like
I
understood
it,
even
after
almost
20
years
of
setting
property
taxes,
but
there
is
this
kind
of
weird
correlation
between
personal
property
and
real
and
the
four
percent,
and
all
of
that-
and
I
certainly
hope
we'll
be
real
careful
in
this
conversation
to
make
sure
that
if
a
conversation
happened
where
the
values
decreased
and
actually
literally
came
off
of
the
the
books
that
it
doesn't
unintentionally
impact
an
automatic
adjustment
in
the
the
tax
rate,
because
that
that
action
in
and
of
itself
could,
as
you
all
understand,
when
the
values
go
down,
compensating
rate
calculations,
could
the
rate
could
actually
go
up
to
keep
revenues.
G
At
the
same
now,
I
realize
this
isn't
taxed
in
the
real
property
section
the
same
way,
but
there
is
a
convoluted
formula
on
the
property
on
the
personal
property
that
actually
does
have
a
bearing
on
the
way
that
the
real
property
rate
is
calculated.
So
again,
I
think
we'd
all
want
to
make
sure
that,
in
that
conversation
that
it
didn't
unintentionally
automatically
immediately
raise
the
rate
on
everybody
else,
just
by
a
simple
reduction
of
it
on
the
tax
value
on
the
tax
rolls.
G
So
if
this
is
a
task
or
the
task
force
and
leaders
believe
this
is
an
industry
tax
that
shouldn't
be
paid,
then
I
hope
you'll
look
for
ways
to
offset
it
in
an
impactful
way
or
in
a
way
that
doesn't
impact
us.
If,
if
that's
something
that
you
all
decide
to
do
that
again
for
us
is
the
simplest
least
impactful
approach
for
counties.
So
we
look
forward
to
continuing
the
conversation
and
I
will
stop.
A
D
Thank
you,
mr
chairman,
and
I've
brought
this
up
before,
but
just
to
just
to
put
it
out
there,
those
that
were
here
in
2014
that
worked
on
this
avalorium
tax
understand
the
process.
We
went
through
that
at
the
time
we
made
a
commitment
to
the
bourbon
industry
to
do
away
with
the
avalorium
tax
through
a
tax
credit.
D
We
made
that
commitment
to
the
bourbon
industry.
We
also
at
the
very
same
time
in
a
roundabout
way,
made
a
commitment
to
the
to
all
the
local
taxing
districts,
cities,
counties,
taxing
districts,
school
districts.
We
made
a
commitment
to
them
to
keep
them
whole
by
the
way
we
set
it
up
where
the
bourbon
industry
paid
the
tax,
the
taxing
districts
received
their
money
and
then,
on
the
back
end,
the
the
the
state
issued
a
tax
credit
for
toward
building
buildings,
investment
in
buildings
and
equipment.
D
We
made
that
commitment
then,
and
it
and
the
reason
we're
here
today
and
the
reason
we're
talking
about
this.
It's
worked
out
very
well
when
we
had
four
million
barrels
of
bourbon
in
the
state.
Now,
as
we
approach
11
million
barrels
of
bourbon
that
that
commitment,
that
system
is
not
working
out
very
well
so
and
in
my
particular
district
half
the
world's
bourbon
is
stored
in
my
senate
district
and
so
of
the
30
million.
Basically
30
million
dollars
paid
in
avalorium
taxes
per
year.
D
9
million
of
it
goes
back
to
9
million
is
processed
through
2
nelson
counties,
6
million
to
marion
county.
So
it's
a.
It
certainly
affects
my
senator
senate
district,
but
this
is
important
and
I
guess
I
just
wanted
to
give
that
a
little
bit
of
history,
how
we
got
to
where
we're
at.
Thank
you,
mr
chairman,.
F
Thank
you,
mr
chairman,
to
somewhat
follow
up
on
senator
higdon
there
and-
and
I
I
like
the
chairman's
admonishment
that
we
ought
to
be
looking
for
solutions,
but
I
want
to
comment
briefly
on
what
solutions,
any
any
taxation
structure,
a
county's
taxation
structure
or
corporate
taxation
structure
or
whatever
it
is,
is
a
structure
for
a
reason,
and
that
reason
is
you've
got
to
look
at
it
as
a
whole.
If
you
pick
out
any
given
tax,
you
can
find
your
flaw
in
anything.
Very
simply,
I
think,
to
senator
higdon's
point.
F
The
general
assembly,
on
behalf
of
the
commonwealth,
made
an
exceptionally
generous
contribution
to
a
solution
to
help
the
bourbon
industry
in
in
14.,
and
I
think
that
I
can
say,
without
fear
of
contradiction
that
you
know
nobody
in
here
is
going
to
raise
their
hand
and
say:
oh,
I
hate
my
sheriffs
or
I
hate
my
schools
or
I
hate
my
counties
or
I
hate
my
libraries
right
on
the
flip
side.
No
one's
going
to
raise
their
hand
and
say:
oh,
I
hate
my
bourbon
guys.
You
know
we
like
both
of
them
but
a
fight.
F
Let's
just
be
frank
and
and
mr
henderson,
obviously
the
your
voice
reflected
a
degree
of
desperation.
If
I'm
going
to
be
frank,
because
the
counties
are
very
worried,
and
rightly
so,
but
but
one
side's
you
know
this
is
this-
is
a
fight
it's
been
picked.
We
can
try
to
avoid
that
elephant
in
the
room,
but
the
fact
is
that's
what
it
is
and
I
would
encourage
both
sides.
F
As
we
look
to
solutions
keep
in
mind,
I
do
not
view
the
commonwealth's
general
fund
or
budget
reserve
trust
fund
as
either
a
salve
or
a
solution
to
that
fight.
The
commonwealth
has
its
own
struggles.
We
still
have
terrible
unfunded
pension
liabilities.
We
have
largely
gotten
them
under
control,
but
we
still
have
terrible
unfunded
pension
liabilities.
F
We
still
have
issues
in
our
state
workforce,
wage
structure.
We
still
have
a
commitment
to
the
people
that
we
made
just
this
last
section
to
work
towards
zero
income
tax
and
anything
that
hits
the
general
fund
or
the
budget
reserve
trust
fund
natively
impacts
our
commitment
to
4.5
million
kentuckians.
F
So
as
the
sides
try
to
find
a
potential
solution,
just
know
that
I
view
that
as
not
being
an
aspect
to
that
solution,
and
so
consequently
I
would
view
with
a
great
deal
of
skepticism
any
solution
that
relied
upon
that.
But
I
do
thank
the
chairman
for
his
admonishment
and
I
think
it's
a
wise
one-
and
I
appreciate
everyone
being
here
today,.
D
Thank
you,
mr
chairman.
I
want
to
recognize
my
county
judge
dan
ison
and
the
deputy
county
judge
john
park,
and
my
sheriff
was
here,
but
I
think
he's
left.
We
have
a
great
interest
in
this
in
our
county,
of
course,
but
I
know
I
understand
that
we
just
negotiated
an
irb
for
the
city
of
shelbyville.
I
believe,
but
the
county
is
part
of
it
there's
an
escape
clause.
I
heard
that
question
earlier
about
how
many
have
escaped
clauses
it's
contract.
D
G
I
I
would
suggest,
that's
probably
a
new
qualifier
okay,
potentially
because
of
this
conversation.
E
Yeah,
thank
you,
mr
chair.
I
want
to
I
practice
law,
I'm
not
an
accountant,
and
I
want
to
I'm
going
to
call
you
jerry,
since,
if
I
said
judge,
six
people
probably
raise
their
hands
out
there
so
on
on
the
barrels,
when
you
say
they're
capitalized,
and
maybe
somebody
from
the
industry.
E
A
C
C
E
I'm
gonna
just
use
jim
beam.
We
can
use
whoever
so
they're
spending
and
you're
saying
it's
capitalized,
so
that
becomes
a
depreciable
asset
is,
and
you
depreciate
that,
over
the
period
of
time
that
that
barrel
will
sit
in
the
rick
house
and
you
can
do
the
accelerated
you
can
do
all
the
other
stuff.
If
I
were
accelerated
depreciation
or
you
can
do
a
straight-line
depreciation,
you
can
whatever
is
that,
so
that
is
a
depreciable
asset
and
and
again
I'm
I'm
going
back
32
years
to
when
I
took
accounting.
C
F
E
Yes,
which
is
a
deduction
on
your
basically
in
your
deductions
and
and
receipts,
it
becomes
the
deduction
whatever
you're
depreciat
right.
So
now
that
is
taxed
at
a
totally
different
rate
because
it
becomes
a
tangible
asset.
What
rate
is
the
barrel
taxed
at.
C
And
it
is
a
county
by
county
and
that's
part
of
what
chairman
mccoy
and
your
answer
to
all
the
irbs,
I'm
not
familiar
with
the
rest
of
them.
I
know
the
one
that's
in
my
county,
it's
literally
90
something
pages
long
and
I've
read
through
it
more
than
once.
E
C
You
go
to
the
285
million
on
the
property
tax
side.
So
that's
just
about
the
way
that
the
bond
is
broken
down.
The
best
way
that
our
cfo
and
folks
have
looked
at
it
and
they
have
a
pilot
clause
in
there
for
the
schools
to
make
up
the
difference
and
that's
accelerated
with
the
addition
of
each
warehouse,
and
it
was
for,
like
15
warehouses,
50
to
58
000
barrel
apiece,
which
is
huge
it
doubles.
C
It
doubles
our
opportunities
from
three
and
a
half
million
to
seven
million
dollars
of
revenue
and
yeah
we're
a
county
of
84
85
000
people.
We
still
can't
swallow
it
because
we
don't
have
an
occupational
tax
and
you
all
heard
me
on
that.
I
mean
they're
self-insured,
so
they
paid
no
insurance.
During
surcharge,
we
have
no
licensing
and
fees,
and
so.
C
I'm
trying
to
help
you
here
a
little
bit.
I
mean
I've
got
a
full
packet
and
I
would
love
to
sit
down
and
educate
all
138
of
you
at
one
time.
I
had
this
discussion
years
ago
in
2013
or
14
about
the
health
of
the
industry
and
where
we
need
to
go
so.
E
It
gets
in
a
bigger
discussion
on
this
right,
so
you-
and
I
say
you
as
bullitt
county-
will-
have
a
totally
different
impact
by
the
industry,
because
I'm
going
to
assume-
and
I
talked
to
the
co-chair
nelson
county-
has
occupational
tax.
It
has
other
things
like
that
right.
So
when,
when
you're
in
henry
county
doesn't
so
when
you're
looking
at
impact
of
an
industry
and
what
it
does
doesn't
matter,
if
it's
this
industry
or
any
industry,
you
got
to
look
at
the
full
taxing
structure
about
how's
the
barrel
tax.
Is
there
an
occupational
tax?
E
G
And
presidents
divers
that
was
kind
of
about
what
was
behind
my
comment
earlier,
that
that,
again,
when
you've
seen
one
county,
you've
seen
one
county
and
and
if
all
of
these
decisions
were,
if
the
taxes
themselves,
whether
they
exist
or
not,
were
determined
by
the
county
or
the
city
or
whatever
versus
it
being
an
across-the-board
tax
or
the
rates
and
all
those
things
some
counties
might
make
of
a
calculated
decision
that
other
counties
would
not
make
based
on.
As
chairman
mcdaniel
said,
the
complexity
of
that
particular
county's
tax
structure
and
so
simpson
county
again.
G
This
is
a
go
forward
not
on
bourbon,
but
you
know
would
make
the
decision
to
forego
property
taxes
and
do
an
irb
on
an
industry,
because
we
had
an
occupational
tax
and
we
were
going
to
collect
that.
Another
county
might
not
make
that
same
decision
on
the
same
two
projects,
because
their
taxing
structure
isn't
the
same.
E
And
that
gets
kind
of
back
to
when
you
look
at
this
initial
sheet,
jerry
that
you
gave
us
2.5
billion
dollars
right
for
bullet
marrying
the
rest
of
them
are
nelson
county
are
those
all
similar
in
duration.
E
C
A
Thank
you
both
gentlemen.
A
couple.
I
got
one
clarifying
question
and
I'll
pick
on
my
sheriff
over
there,
but
I
think
you
can
answer
it
for
me.
Mr
anderson,
the
if
you
could
back
up
to
the
slide
that
had
nelson
county
yeah
right
there
just
to
clarify
that
230
000
is
already
included
in
these
other
taxes
right,
it's
a
percentage
of
what
is
to
okay.
Thank
you
sheriff.
I
just
wanted
the
public
to
understand
it's,
not
an
additional
230.,
but
when
we're
looking
at
where
the
money
goes,
yep,
okay,.
G
A
A
Right
so
for
everybody's
edification,
you
know
the
initial
meeting
we
had
a
chart
that
we
put
up.
I
I
think
we
sort
of
all
agree
that
that
snapshot
was
as
accurate
as
we
could
get
it.
It
gives
us
a
good
idea
and
included
in
that
number.
Is
this
revenue
stream
already
for
the
sheriff?
So
it's
not
additional.
A
Just
kind
of
a
basic
question
here
understand
the
revenue
is
important,
and-
and
I'm
stressing
that
to
you,
because
we're
here
to
try
to
figure
it
out,
is
it
important
where
the
revenue
comes
from
as
long
as
it
comes
in?
Is
there
any
part
of
this
where
it
by
golly
it's
got
to
be
a
tax
on
those
barrels
or
that
spirit
or
this
industry.
G
I
can't
answer
for
every
county
on
what
their
personal
opinion
is
about,
whether
or
not
this
should
or
shouldn't
be
taxed
and
really
from
a
from
a
broad
perspective.
That's
not
our
place.
I
mean
it's
not
a
question,
we're
not
setting
tax
policy
by
and
large
on
on
anybody
much
other
than
those
entities
that
we
do
set
the
tax
or
have
the
power
to
tax
ourselves,
but
I
do
think
any
model
would
have
to
include
in
the
one
thing
that
again,
I
think
one
of
the
members
of
the
committee.
G
G
All
those
things
are
different
in
every
county,
so
whatever
the
expectation
was
based
on
a
reasonable
business
decision
that
a
county,
government
or
city
government
or
whoever
was
involved
in
making
the
decision
would
have
made
the
model
would
need
to
fit
as
closely
to
that
as
possible
because
again
henry
county,
how?
How
do
we
know
what
that's
going
to
look
like
when
we
don't
really
have
any
historical
data,
yet
so
simply
putting
the
number
in
that
they
have
now?
Isn't
it
can't
be
the
number?
G
A
Okay,
thank
you
any
other
comp
questions
comments
from
members
on
the
committee.
If
not,
I
think
we're
at
the
end
here.
The
next
meeting
will
be
presidents
divers.
I
do
just
want
to
make
one
kind
of
clarifying
point.
We
we
tend
to
focus
so
much
on
the
existing
distilleries
and
I
hope
folks
see
that
the
real
impetus
and-
and
mr
this
kind
of
was
your
opening
comment
boy.
We
haven't
heard
a
lot
locally
about
this
and
in
the
reality
is.
A
This
is
really
something
that
I
think
impacts
companies
that
aren't
here
right
now,
which
is
why
you
haven't
heard
from
it.
But
what
we're
seeing
over
and
over
and
over
again
you
know
the
firestone
family
moved.
A
big
distillery
to
texas
rumor
here
in
frankfurt
is
one
of
our
locals
is
moving
a
big
one
to
indiana
and
I'm
talking
a
big
big,
big
one.
A
D
A
Is
we
look
for
creative
solutions
going
forward,
in
my
mind
at
least
there's
a
whole
lot
that
says
maybe
there's
a
status
quo
and
maybe
there's
a
future
and
and
if
we
could
get
creative
there,
I
think
we
might
see
some
common
ground
so
I'll
leave
you
with
that.
President's
divers
is
up
for
the
september
meeting.