Bill > LB212

This bill modifies the Tobacco Products Tax Act by changing the tax calculation for cigars, cheroots, and stogies. Currently, these tobacco products are taxed under a general provision, but the bill introduces a specific tax rate of twenty percent of either the purchase price paid by the first owner or the price at which a first owner who manufactured the items sells them to others, with a maximum tax cap of fifty cents per cigar, cheroot, or stogie. The bill does not change tax provisions for other tobacco products like snuff or electronic nicotine delivery systems (ENDS), which retain their existing tax structures. The new tax provisions will become operative on October 1, 2025, and the bill will repeal the original section of the law it is amending. The purpose appears to be providing more precise and potentially more equitable taxation for specific tobacco products, particularly cigars, by establishing a clear percentage-based tax with a reasonable maximum amount.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59371