Bill > LB712

This bill changes the tax rate on electronic nicotine delivery systems (ENDS), which are battery-operated devices used to vape or inhale nicotine-containing liquid. Currently, the tax is ten percent of the purchase price, and the bill would increase this to forty percent of the purchase price for all ENDS, regardless of the volume of consumable material. The bill removes previous language that differentiated tax rates based on whether an ENDS contained three milliliters or less of consumable material. The new tax rate would apply to the first owner of the ENDS, such as the manufacturer or initial purchaser, and would be calculated based on either the purchase price paid by the first owner or the price at which the first owner sells the item to others. The tax is in addition to all other existing taxes, and the revenue collected will be used and distributed according to existing state law. The bill also repeals the original section of the law to replace it with this updated version.