Do not increase our alcohol tax rate

I am writing to request that you reject Governor Jim Pillen’s proposal to increase the current excise tax rate for distilled spirits by 287% from $3.75/gallon to $14.50/gallon.

According to analysis by the Distilled Spirits Council, if this tax increase is passed, around 1,350 Nebraskans are projected to lose their jobs because of a more than $110 million decline in retail alcohol sales. Additionally, the new rate would establish Nebraska as the second highest spirits tax rate in the country among licensed states.  

The proposal would nearly quadruple beverage alcohol taxes in Nebraska, even though distilled spirits are already highly taxed in our state. For a typical bottle of distilled spirits purchased in Nebraska, more than 44% of the retail cost already goes to pay a tax or fee of some kind. 

This so-called “sin tax” is really a tax on a hospitality industry that has yet to fully recover from the pandemic and adult consumers across the state.

Please protect consumers and small businesses by rejecting an increase on alcohol taxes.