Omaha distillery owners concerned over possible tax hike on spirits

OMAHA, Neb. (WOWT) - Producing distilled spirits in Nebraska costs about $3.75 a gallon. Soon, it could get higher. Governor Jim Pillen’s property tax plan is proposing an excise tax hike of almost 300% on distilled spirits.

“I think we could better spread it out through something else, whether it’s sales tax or wheel tax. Some other type of way to get some relief,” said Jeff Hadden, owner of Soldier Valley Spirits.

Hadden has owned his business in La Vista for 10 years. As a native Nebraskan, taking his business elsewhere is the last thing he wants to do. But if the tax is hiked he just might have to.

“Kansas is really reasonable, Missouri is one of the cheapest. So we’ll have to see what happens,” Hadden said.

Graham Rupe has owned Wahoo Distillers for less than two years. Leaving the state isn’t an option for him.

“It’s just concerning to me,” Rupe told 6 News. “I feel like we’re raising taxes in the wrong area. I don’t understand why we’re targeting spirits.”

However, things could get more expensive for his customers.

“At the end of the day, if this goes through we will end up passing this on to our consumers,” Hadden said.

Both Hadden and Rupe are hopeful the tax hike will be reconsidered so they can continue business as usual.

“We generate quite a bit of revenue for the state. I would hope that would be taken into consideration,” Hadden said.

Both owners said they’re considering reaching out to state leaders to stop the tax.

Lawmakers have two more days to introduce bills at the unicam, Friday and Saturday.