Today is day 43 of the 60 day regular legislative session.

Now, another bill in Frankfort looks to change the calculation on certain recreational beverages.

A plan is in motion to add a 4% retail fee onto alcoholic and cannabis infused beverage sales.

A Republican leader says this will simplify how taxes are calculated on beverages, but a local business owner says it could hurt retailers.

Our Emily Sisk explains more on House Bill nine.

>> Right now, alcohol in Kentucky is taxed via an excise or wholesaler tax.

That means based on the type of alcohol like wine, spirits or beer, the tax is different.

But House Bill nine looks to get rid of that system and create a standard 4% retail regulatory fee.

House Appropriations and Revenue Chair Jason Petrie said this could give retailers more flexibility in how to price their products.

>> I am so hopeful in every way that I can be, that this will be a much less complex schema than we have now, which will take out friction, take out cost, and give better pricing.

Flexibility at all levels is my hope.

>> But a Northern Kentucky Barr owner, spoke out against the bill, saying this could further hurt local retailers who are already struggling to stay afloat from the impact of tariffs.

>> I'm here as the owner of a small neighborhood establishment, to declare that House Bill nine will hurt my business by shifting to a two, a 4% sales tax throughout the state.

You're removing the tax from everyone but the residents of Kentucky, who will now have to pay more to make up for the difference.

Money conscious consumers will probably end up drinking less or going to neighboring states if possible.

>> Chair Petrie said he sees it differently, saying the fee should level the playing field for all alcohol and cannabis infused products, rather than having different fees for different drink types.

The Elkton Republican also said this legislation was set in motion before tariffs hit the bourbon industry.

>> This this concept started well before any actions were taken at the federal level.

>> Another important piece of HB nine is that the fee is extended to hemp derived beverages based on the quantity of THC in the product.

This is the first time these types of products will be in a formal tax structure, and Representative Matt Cooke said the legislation will be set up for any other intoxicating beverages that may come down the pike.

>> This is also about the long term and how we regulate it, and simplifying how we're able to regulate these products.

And not just alcohol, but it's hemp, it's kratom.

It's every new product that keeps coming in line.

And this helps us put the framework together to be able to manage that into the future.

For products that we don't even know, they're not even on the market yet.

>> The House minority floor leader took issue with the bill, saying it seemed to benefit large corporations rather than Kentucky businesses and customers.

>> Because it seems like when it is being passed away from corporations to the consumer.

And then, number two, that the small businesses that are barely making it but make Kentucky rich are not being taken care of.

>> Despite concerns, House Bill nine passed out of committee just a couple of hours later, the full House advanced it on a vote of 63 to 31.

It now heads to the Senate for further consideration for Kentucky edition.

I'm Emily Sisk.

>> Thank you so much, Emily.

The 4% retail fee would be on top of the state's 6% sales tax.