NASHVILLE, Tenn. — Jack Daniel’s officials are toasting the defeat of a proposal to tax whiskey at its celebrated Tennessee distillery.

The Moore County Council in Lynchburg, Tenn., voted 10-5 Monday evening to kill a proposal that could have taxed Jack Daniel’s up to $5 million annually, with all the revenue going to local coffers.

“We hope we’ve been able to demonstrate that the distillery pays more than its fair share of taxes and that we’ve contributed to our way of life in Lynchburg,” said Tom Beam, senior vice president and general manager of production at the facility.

The vote reversed an earlier one that had asked the Tennessee legislature to authorize a local referendum on the per-barrel tax proposal. The distillery, owned by Louisville, Ky.-based Brown-Forman, now pays $1.5 million in local property taxes.

“We hated to see this drive a wedge through our family here,” Beam said.