NASHVILLE (AP) - Tennessee's Jack Daniel distillery, celebrated for years in folksy advertising, is being targeted to pay more taxes - with a tab of up to $5 million.

A proposal asks the Tennessee legislature to authorize a local referendum on whether the distillery should pay that much in new taxes on barrels it fills with whiskey.

The 145-year-old distillery, tucked away on 1,700 hilly acres in rural Lynchburg, Tenn., fills 500,000 barrels yearly. If approved, the proposal could be a substantial help to the local government, whose annual budget is $3 million and would get every last drop, so to speak, of the money. The proposal has already been approved by the county council in Lynchburg, 65 miles south of Nashville.

Distillery officials say they already do their civic and fiscal duty.

"We're paying our part, our fair share," said Tom Beam, senior vice president and general manager of production at the facility. The distiller y now pays $1.5 million in local property taxes in the county.

Nevertheless, supporters of the referendum say Jack Daniel still owes more.

"Lynchburg and the people of Moore County have been involved in the success of the Jack Daniel brand; the value of the brand worldwide is due in no small measure because they have marketed our town and people successfully," said Charles Rogers, who has spearheaded the proposal.

The distillery has been featured in Jack Daniel's advertising using black and white print ads showing workers or townsfolk wearing overalls. The ads usually list the city population as 361, but the town and county really have about 6,400. Ten million cases of the sour mash whiskey, led by Old. No. 7, are sold worldwide every year.

"They owe something back to the county," said Rogers, a Lynchburg native and retired executive with the Chrysler Corp.

For those with thirsty throats fearing a retail price increase if the proposal passes, cor porate officials would not speculate. But Beam offered this sobering thought:

"We'd be out several million dollars a year. We'd have to look to save money."

The proposal will go to the General Assembly early next year. If authorized there, the referendum in the county could be held as early as next November.

Rogers believes it will be a tough fight in the legislature, but if authorized there, "I feel pretty certain it would pass (locally)."

State Rep. Debra Maggart, chairwoman of the Republican majority in the Tennessee House of Representatives, agrees the proposal faces opposition in the legislature.

"No taxes will be raised on our job creators," she predicted.

Beam said passing it would be "a terrible precedent."

"Other counties could try to do the same thing, attacking businesses. It could be a job killer," he said.

According to The Tennessean (http://bit.ly/oHa57b) , Louisville-based Brown -Forman, the distillery's owner, is well heeled to make political contributions as a possible fight looms. The paper reported the company's political action committee has $278,000 heading into 2012 elections.

About 210,000 people visit the distillery annually, making it a top tourist draw in Tennessee. With 450 employees, it's the biggest industry in the county.

Beam said the distillery has already helped the area in several ways, including assisting with renovations at the courthouse and a swimming pool.

"We operate as a partner with the county," he said.

Rogers, who moved back to Lynchburg after a career in corporate work, said he has nothing personal against the whiskey.

"I never was a heavy drinker, but I liked Jack Daniel when I had a drink," he said. "I was a good customer."