OMAHA, Neb. (KMTV) — 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.
"If our cost eventually goes up, there is a good chance you do see the price increasing on the retail side," Heiliger said.
"44% of the cost of a bottle of spirits comes from taxes so if we quadrupled our taxes now, that number would be extremely high and spirits would be almost unaffordable," Triemert said.
Zac has been in this industry since it began in Nebraska, he was part of the initial push to legalize distilleries in 2006.
"Now there are more than a dozen local Nebraska distilleries that will be drastically affected by this increase," Triemert said.
With the special session just starting Zac says all the local distillers are banning together to get the word out and talk to their local legislators.
