Right now the tax for distilled spirits in Nebraska is $3.75/gallon. Pillen’s plan would increase that 287% to $14.50/gallon.
“When I heard it was nearly quadruple, it truly felt like a gut punch,” said Zac Triemert, president and head distiller of Brickway Brewery and Distillery in Downtown Omaha and Cut Spike Distillery in La Vista.
He says he’s already working with thin margins trying to make a profit, but keep his prices competitive with larger, national brands.
“We have squeezed our margins already paying our current 3.75 cents/gallon so any increase in that rate would really decimate any margins we have left,” Triemert said.
Something he says could take out both Lucky Bucket and Brickway.
“I think it would be worse than just laying off people, which that is the start but that is the beginning of the end,” Triemert said.
Wine, Beer and Spirits co-founder, Jake Heiliger feels for producers like Zac and says his store’s pricing will depend on what happens before it even gets to their shelves.