The Nebraska legislature today approved omnibus alcohol legislation (LB 274), supported by the Distilled Spirits Council of the United States (DISCUS), which includes provisions allowing cocktails to-go permanently and reducing the tax rate for spirits-based ready-to-drink (RTD) products. The bill now goes to Governor Pete Ricketts for signature.
“Cocktails to-go has proved to be a vital economic lifeline for hospitality businesses across the state, and now, Nebraskans are one step closer to enjoying cocktails to-go on a permanent basis,” said Kristi Brown, DISCUS Senior Director of State Government Relations. “Nebraska businesses have been hit particularly hard, and making cocktails to-go permanent will provide certainty and stability for the state’s restaurants and bars while increasing consumer convenience.”
The bill defines a “ready-to-drink cocktail” as a spirits-based product of 12.5 percent alcohol by volume (ABV) or less and provides an excise tax rate of $0.95 per gallon, which is equivalent to the wine excise tax rate.
“Reducing the tax rate for spirits-based ready-to-drink products will benefit adult consumers as well as Nebraska spirits producers looking to enter the market,” Brown added. “We thank the legislature for passing this legislation and urge Governor Ricketts to sign this bill making cocktails to-go permanent and reducing the tax rate for spirits-based RTDs.”
If signed, the RTD tax reduction would take effect on July 1, 2021, but other provisions would take effect immediately.
Cocktails To-Go Background:
More than 35 states began allowing restaurants and/or bars to sell cocktails to-go as a COVID economic relief measure. Iowa, Ohio, Kentucky, Wisconsin, Montana, Arkansas, West Virginia, Georgia, Oklahoma, Texas, Florida, Kansas and the District of Columbia have all made COVID-era cocktails to-go measures permanent. Dozens of other states are also considering legislation to extend or make permanent cocktails to-go measures.
The distilled spirits industry is committed to responsibility and encourages moderation for adults who choose to drink alcohol. Cocktails to-go are intended for home consumption. Laws governing alcohol consumption must always be observed.