Move would have resulted in 1,350 lost jobs, made Nebraska the second-highest tax rate for spirits among licensed states and reduced retail sales by $110 million
A proposed increase in the excise tax rate for distilled spirits from $3.75/gallon to $14.50/gallon has been defeated in Nebraska following grassroots activation by the Distilled Spirits Council of the United States (DISCUS) through Spirits United and coordination with local distillers and wholesale partners.
The 287% increase was part of Nebraska Governor Jim Pillen’s property tax plan and was removed by amendment. More than 1,500 letters were sent to legislators through the Spirits United campaign.
“Defeating this tax threat is a huge win for consumers, distillers and the hospitality industry,” said Adam Smith, vice president of state government relations at DISCUS. “We’ve seen in other states how high taxes send consumers across the border as they search for better prices. However well-intentioned, this hospitality tax would have harmed local businesses and Nebraska consumers. We are grateful to the Legislature for removing this increase from consideration.”
According to analysis by the Distilled Spirits Council, if the increase would have passed, around 1,350 Nebraskans were projected to lose their jobs because of a more than $110 million decline in retail alcohol sales. Additionally, the new rate would have established Nebraska as the second-highest spirits tax rate in the country among licensed states. More than 44% of the retail cost of a spirits bottle already goes to pay a tax or fee of some kind in Nebraska.