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, according to WSWA.
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 later 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, WSWA states. Although the debated amendment was less drastic than the original increase, it could have led to a loss of nearly 600 jobs across the state’s hospitality industry and a $23.6 million loss in wages, according to an economic analysis conducted by John Dunham and Associates.
However, legislators adopted a floor amendment the following day to strike the tax increase language, as proponents worried that the legislation would not have enough support to move forward, according to WSWA. 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‘s (WSWA) grassroots advocacy network, Project Twenty-One, mobilized Nebraskans in an industry-wide coalition that included participants from the producer, wholesaler and retailer tiers. Together, they sent over 6,000 emails to their legislators in opposition to the excise tax increase, the company states.
“This is a victory for wholesalers and distilled spirits consumers alike,” said WSWA VP of state affairs Chelsea Crucitti in a news release. “If enacted, this tax would have increased the per-bottle cost of Nebraskans’ favorite spirits while hitting the state’s hospitality industry hard.”
