Proposal to tax Jack Daniel whiskey derailed

By JOE EDWARDS | November 21, 2011 | 9:30 PM EST

NASHVILLE, Tenn. (AP) — A proposal to tax barrels of Jack Daniel whiskey up to $5 million annually has been derailed before it could reach the Tennessee Legislature.

The Moore County Council voted 10-5 Monday to rescind a vote asking lawmakers to authorize a local referendum on the proposal.

It would have taxed Jack Daniel with the revenue going to local coffers.

Charles Rogers of Lynchburg had spearheaded the effort and said the issue "is now on life support."

Jack Daniel is the world's top-selling whiskey, distilled in the tiny town of Lynchburg which has been celebrated in folksy, black-and-white advertisements for years.

State Rep. David Alexander said he considers the issue dead.

A distillery spokesman did not return an after-hours call for comment.