Nebraska
Nebraska State Contact Information
Nebraska Department of Revenue
(402) 471-5729
Nebraska Accountability and Disclosure Commission
(402) 471-2522
Taxation in Nebraska
Nebraska imposes a Tobacco Products Tax on the first owner of tobacco products to be sold in the state. The “first owner” is any person: (1) engaged in the business of selling tobacco products in Nebraska who brings or causes to be brought into the state any tobacco products for sale in Nebraska, including a retailer who purchases directly from suppliers outside the state who are not licensed in Nebraska; (2) who makes, manufactures, or fabricates tobacco products in Nebraska for sale in the state; or (3) engaged in business outside Nebraska who ships or transports tobacco products to retailers in the state and who becomes licensed in Nebraska.
Neb. Rev. Stat. § 77-4008
Neb. Rev. Stat. § 77-4004
Staff reported that tobacco dealers may be subject to additional local tobacco products taxes.
The tax on snuff is $0.44 per ounce and a proportionate tax on all fractional parts of an ounce, computed based on the net weight as listed by the manufacturer. The tax on tobacco products other than snuff is 20% of: (1) the purchase price of the tobacco products paid by the first owner; or (2) the price at which a first owner who made, manufactured, or fabricated the tobacco product sells the items to others.
The first owner of tobacco products must file a Nebraska Tobacco Products Tax Return (Form 56) and Schedules I and II on or before the 10th day of each month, along with payment for taxes due.
Nebraska Department of Revenue: Cigarettes & Other Tobacco Products
http://www.revenue.nebraska.gov/cig/cig_info.html
Form 56: Nebraska Tobacco Products Tax Return
http://www.revenue.nebraska.gov/tax/current/fill-in/f_56.pdf
Form 56, Schedule I: Tobacco Products Other than Snuff Imported or Manufactured and Exported
http://www.revenue.nebraska.gov/tax/current/fill-in/f_56s1.pdf
Form 56, Schedule II: Snuff Imported or Manufactured and Exported
http://www.revenue.nebraska.gov/tax/current/fill-in/f_56s2.pdf
Definitions in Nebraska
“Smoking” or “smoke means the lighting of any cigarette, cigar, pipe, or other smoking material, or the possession of any lighted cigarette, cigar, pipe, or other smoking material, regardless of its composition.
“Tobacco products” means: cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; Cavendish; plug and twist tobacco; fine cut and other chewing tobacco; shorts, refuse scraps, clippings, cuttings, and sweepings of tobacco; and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise or both for chewing and smoking, but tobacco products does not mean cigarettes.
“Snuff” is any finely cut, ground, or powdered tobacco that is not intended to be smoked.
“Smokeless tobacco” is: (1) loose tobacco or a flat compressed cake of tobacco that may be chewed or held in the mouth; or (2) a small amount of shredded, powdered, or pulverized tobacco that may be inhaled through the nostrils, chewed, or held in the mouth.
The “first owner” is any person:
- engaged in the business of selling tobacco products in Nebraska who brings or causes to be brought into the state any tobacco products for sale in Nebraska, including a retailer who purchases directly from suppliers outside the state who are not licensed in Nebraska;
- who makes, manufactures, or fabricates tobacco products in Nebraska for sale in the state; or
- engaged in business outside Nebraska who ships or transports tobacco products to retailers in the state and who becomes licensed in Nebraska
A “tobacco specialty store” is a retail store that: derives at least 75% of its revenue from tobacco products, tobacco-derived products, vapor products, or alternative nicotine products; and does not permit minors under 18 years of age to enter the premises unless accompanied by a parent or legal guardian.