Flavored malt beverages to be taxed as beer

Flavored malt beverages will be taxed at the same rate as beer under a bill passed by the Legislature April 2.

LB824, introduced by Wilber Sen. Russ Karpisek, ensures that flavored malt beverages will be taxed at the same rate as beer rather than the higher hard liquor rate.

The bill places restrictions on the amount of alcohol in a flavored malt beverage that can be derived from flavorings or distilled alcohol. A malt beverage with more than 6 percent alcohol by volume may not contain more than 1.5 percent of alcohol by volume derived from flavoring.

LB824 includes a provision that changes the trigger date for payment of state excise tax to align with the federal trigger date. State excise tax will be levied when the product is shipped from its bonded location.

Senators passed the bill on a 37-6 vote.