Nebraska Governor’s Proposed 287% Booze Tax Hike Would Have ‘A Chilling Effect on the Spirits Industry’, National Liquor Trade Association Says

A proposed liquor tax could be disastrous for Nebraska distilleries. (Photo: AP Photo/The Casper Star-Tribune, Alan Rogers)

The Distilled Spirits Council of the United States released a statement in response to Nebraska Gov. Jim Pillen’s pitch for a 287% excise tax raise for distilled spirits within the state on Wednesday. The organization shared that if the initiative passed, 1,350 Nebraskans would lose their jobs and liquor retail sales would fall by $110 million.

“This massive tax increase would have a chilling effect on the spirits industry that would ultimately have far-reaching implications for others including local farmers, manufacturers and hospitality businesses,” Distilled Spirits Council of the United States Vice President of State Government Relations Adam Smith said in a statement. “The legislature should protect consumers and small businesses by rejecting this increase on alcohol taxes.”

Should the measure go through, beverage alcohol taxes in the Cornhusker State would nearly quadruple. The state would then host the second-highest spirits tax rate within the United States, behind only Washington.

Pellen’s initiative was part of a property tax plan that would affect the excise rates, changing them from $3.75 a gallon to a staggering $14.50 a gallon.

Distilled Spirits Council of the United States, or DISCUS, is a trade association that represents American liquor producers and marketers.

The Nebraska Examiner reported on Monday that the governor shared these taxes should raise approximately $216 million for the state during the first year they are imposed. The governor additionally intends to impose taxes on cigarettes, vape devices and supplies, Keno, consumable hemp and “games of skill,” according to the Examiner.

KETV Omaha reported that craft distilleries within the state claimed they could go out of business if the governor increases so-called “sin” taxes.

“An increase of this level could definitely take all of us out of business and stop the Nebraska craft distilling scene entirely,” Cut Spike Distillery Owner Zac Triemert said, according to the local news station.

DISCUS started a campaign against the governor’s proposed tax raise, and it appears local distillers are willing to defend their businesses from the proposed plan.

“We would fight as well as we could,” Triemert said, per KETV Omaha.

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