The Jeff Davis Parish School Board is considering a tax break for a nearly $10 million planned expansion of the Bayou Rum distillery over the next few years.

The School Board will take up the issue at a special meeting at 5 p.m. May 25.

Louisiana Spirits, doing business at Bayou Rum, is seeking a property tax exemption to help offset the cost of the proposed expansion project at its 27-acre facility in Lacassine.

The exemption is part of the state’s Industrial Tax Exemption Program ITEP) which makes tax incentives available for manufactures who commit to jobs and payroll. Under the rules, the company would receive forgiveness for 80 percent of the local property taxes for five years to offset the cost of the expansion of its manufacturing process to include storing and bottling of Bayou Rum products.

Jeff Davis Parish Economic Director Creed Romano and Ronnie Petree of the Jeff Davis Parish Industrial Development Board presented information to the School Board last week concerning a proposed property tax exemption and plans to expand the privately-owned distillery.

Stoli Director of Manufacturing and Louisiana Spirits President Angelo Torre was out-of-country on business and could not attend the meeting. He is expected to attend the special meeting to answer questions from board members concerning the exemption request.

“What they are proposing to do this time is put about $4 million in the cost of a new building expansion of their rum library where they will have storage for the liquor they process and bottle there,” Petree said. “They will also do $5 million in equipment purchases to expand that plant.”

Creed said there are possibilities of further expansion of the Stoli line in Jeff Davis Parish to include vodka.

“It’s just going to grow and create more jobs,” he said. “Expansions like this are going to attract other businesses to locate in that area.”

Although the parish will lose nearly $200,000 in property taxes over the five year exemption, an estimated $200,000 in sales taxes is expected to be generated by the purchase of nearly $4 million in building materials and about $189,000 in sales taxes from the purchase of $3.7 million in machines and equipment for the expansion.

“For this new expansion, which will not be completed until 2025, the estimated cost of the expansion is $9,952,680,  so we are talking about almost a $10 million investment and an expansion in Jeff Davis Parish,” Creed said.

Board member David Doise voiced concern for the tax exemption.

“As a businessman, I would hope that my business would grow enough where it could support itself on expansion without having to come to the government bodies and take money from the parish,” Doise said. “We want to grow to and we want to make our money and be able to expand, as well.”

Creed said the company paid $66,064 in property taxes in 2022 with $50,690 in sales taxes generated by the gift shop for a total collection of over $116,750. From 2019 to present, they have paid $135,530 in general sales taxes from gift shop sales.

In addition, he said Bayou Rum has invested in the parish by hiring and buying locally and being active in the community.

The company currently has 133 employees. Three more jobs will be added with the new automation system as part of the expansion.

The Jeff Davis Parish Police Jury and Sheriff’s Office will also consider the tax exemption. However, the Louisiana Board of Commerce and Industry and governor will have the final say on the matter.