Governor Jim Pillen’s recent proposal to provide property tax relief by increasing excise taxes on a list of 100 everyday goods and services, including a 287% increase on distilled spirits was rejected this week by Nebraska’s state legislature.
As introduced, Governor Pillen’s proposal would have increased the excise tax on distilled spirits from $3.75 per gallon to $14.50 per gallon – one of the highest tax rates in the country. The language was then amended in committee to increase the tax on most distilled spirits to $7 per gallon before being voted out of committee and onto the floor for debate. The debated amendment, though not as drastic as the original increase, could have led to a loss of almost 600 jobs across the state’s hospitality industry and a loss of $23.6 million in wages, according to an economic analysis done by John Dunham and Associates.
However, legislators adopted a floor amendment the following day to strike the tax increase language as proponents worried about the legislation not having enough support to move forward. The final bill LB 34 was passed by the legislature earlier today and will be sent to the Governor in the coming weeks.
Wine & Spirits Wholesalers of America (WSWA)’s grassroots advocacy network, Project Twenty-One mobilized Nebraskans in an industry-wide coalition reaching across the producer, wholesaler and retailer tiers to send over 6,000 emails to their legislators in opposition to the excise tax increase.
“This is a victory for wholesalers and distilled spirits consumers alike,” said WSWA Vice President, State Affairs Chelsea Crucitti. “If enacted, this tax would have increased the per bottle cost of Nebraskans’ favorite spirits while hitting the state’s hospitality industry hard.”