A proposed 287% liquor tax increase in Nebraska will not go ahead after more than 1,500 letters were sent to lawmakers.

Nebraska Governor Jim Pillen considered reducing property taxes by increasing excise taxes on 100 everyday goods and services, including a three-digit increase in liquor taxes.

Pillen had planned to raise the current excise tax on liquor from $3.75 per gallon to $14.50 per gallon.

However, following a grassroots initiative by the Distilled Spirits Council of the US (Discus) and consultation with local distilleries and wholesale partners, the tax increase is no longer being considered.

Discus’ “Spirits United” campaign sent more than 1,500 letters to lawmakers, urging consumers and industry representatives to write to their senators and testify against the tax increases.

“Avoiding this tax threat is a huge win for consumers, distillers and the restaurant industry,” said Adam Smith, vice president of federal relations at Discus.

“We’ve seen in other states how high taxes drive consumers across the border in search of better prices. As well-intentioned as this restaurant tax may be, it would have hurt local businesses and consumers in Nebraska. We’re grateful to lawmakers for not considering this increase.”

According to Discus, if the tax increase had gone ahead, around 1,350 people would have lost their jobs because retail alcohol sales would have fallen by more than $110 million, according to an analysis by the trade association.

In addition, the new tax rate would have made Nebraska the state with the second-highest liquor tax rate among U.S. states with alcohol sales.

The state already pays a high tax rate on liquor. For a typical bottle purchased in the state, more than 44% of the retail price is already spent on taxes or fees of some kind.

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