Every person engaging in business as a retailer in Nebraska must first obtain a Sales Tax Permit by submitting a Nebraska Tax Application (Form 20). Each first owner of tobacco products to be sold in Nebraska must then obtain a Tobacco Products License for each place of business from the Nebraska Tax Commissioner by filing a Nebraska Cigarette and Tobacco Products License and Registration Application (Form 20CT) and paying a $25 licensing fee. Tobacco Products Licenses remain in effect unless the license is revoked, canceled, or suspended.
Localities may require additional business licenses.
The Nebraska Supreme Court recently ruled that the exemptions for tobacco retail outlets and cigar bars constitute unconstitutional special legislation and are therefore invalid. The Nebraska Legislature passed a bill that clarifies its intent in allowing this exemption, and differentiates cigar and pipe tobacco use from general cigarette use.