A person outside of Nebraska who ships or transports tobacco products to any person in the state to be sold in the state may make application for a license and be granted such a license by the Tax Commissioner. If a license is granted, such person shall be subject to the Tobacco Products Tax Act and shall be entitled to act as a licensee.
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.
Additional information about licensing in Nebraska is available at the Operating Your Business and Definitions link above.
The federal PACT Act requirements concerning cigarettes, roll-your-own tobacco, and smokeless tobacco products apply. The federal PACT Act requires any person who sells, transfers, or ships cigarettes, roll-your-own tobacco, and smokeless tobacco into a state to register with the tobacco tax administrator of the state. The federal PACT Act requires delivery sellers to comply with shipping requirements.
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. There are no additional tax requirements for the shipment of tobacco products. Sellers must pay all applicable taxes.