‘Don’t kill our industry’: Lincoln distillery pushes back on proposed 287% tax hike

LINCOLN, Neb. (KLKN) — Some Nebraska businesses are worried about the impact of tax changes proposed in the Nebraska Legislature’s special session.

Part of Gov. Jim Pillen’s property tax relief plan, introduced by Sen. Lou Ann Linehan of Omaha, is a 287% tax hike on distilleries.

Manufacturers and wholesalers would pay $14.50 for each gallon of liquor they sell.

Cody Schmick, co-owner of Sideshow Spirits, said the proposal will hurt businesses like his.

“It would absolutely shut down some of the newer distilleries,” he said. “Some of the more established distilleries could weather the storm, but it’s going to slow growth significantly.”

There are only 12 craft distilleries in Nebraska, Schmich said, but they benefit the state as a whole.

“It helps with tourism, it helps with jobs, it helps with agriculture,” he said. “We’re using all Nebraska corn. Don’t kill our industry right now.”

Schmick is offering a compromise, saying the state shouldn’t impose the tax increase on local distilleries making less than 100,000 gallons a year.

Channel 8 reached out to Linehan’s office for comment but has not received a response.

The special session resumes Monday.