Legislators Still Seeking Answers On Property, Alcohol Taxes

The Nebraska Legislature had a late night until 10 last Thursday, when the hearing concluded for the three bills relating to the highly debated property tax issue: LB314, LB497 and LB677.

Public comments for and against the three bills were heard by the Legislature’s Revenue Committee.

Numerous Nebraska farmers, local brewers and professionals related to the alcohol industry, as well as rural school administrators, were in attendance and spoke their piece about a possible property tax decrease and related possible alcohol and tobacco increases to offset it.

The comments left the committee seeking answers and unsure where to turn.

According to the Norfolk Daily News, LB314 was amended. The amendment would remove the per gallon tax increase on beer, wine and liquor, but would instead increase sales tax on alcohol an additional 3 percent.

“My original intent was to utilize the existing excise tax system and raise it by an amount that equals roughly 10 cents per drink. My thought was that 10 cents per drink would be manageable for all involved and would be a cost that could be passed on,” State Sen. Tom Briese, R-District 41, told the Daily News.

It was Briese who introduced a bill to increase the state alcohol sales tax from 5.5 percent to 6 percent. Under earlier discussed plans, the cigarette tax also would go up $1.50 a pack along with increased taxes on wine, beer and liquor.

Briese said the bill has been revised to accommodate some concerns of craft brewers.

“What we did, we’re going to have a surtax at the retail level,” he told the Daily News. “Alcohol will be taxed at a statewide sales tax rate of 8.5 percent, instead of the currently existing 5.5 percent. If you do the math on that, say on a case of beer at $20, at 3 percent it would be a 60 cent increase.”

In a press release, Briese said he was looking for a more transparent way for consumers to see where dollars are being collected, “while keeping our local small businesses able to offer competitive prices on the shelves.”

The amended bill could lead to a possible road to answers or possibly another dead end. The lengthy process is to continue.