This legislative bill amends Nebraska's statutes concerning the regulation and taxation of tobacco and nicotine products, particularly focusing on alternative nicotine products and electronic nicotine delivery systems. It introduces key definitions, such as "alternative nicotine product," which includes products containing nicotine or a nicotine analogue intended for human consumption, and clarifies the definition of "electronic nicotine delivery system" to encompass devices delivering nicotine in vapor or aerosol form. The bill establishes that tobacco products involved in violations of the Tobacco Products Tax Act are considered contraband, subject to forfeiture and destruction. Additionally, it modifies licensing provisions, allowing the Tax Commissioner to revoke or suspend licenses for violations and imposing civil penalties for noncompliance.

The bill also introduces new tax regulations, imposing a ten percent tax on electronic nicotine delivery systems with more than three milliliters of consumable material and a twenty percent tax on alternative nicotine products and unspecified tobacco products. It outlines the responsibilities of sellers regarding tax payments and enhances enforcement measures, allowing the Tax Commissioner to suspend or revoke licenses for violations. The act is set to become operative on January 1, 2026, and repeals several existing statutes related to tobacco taxation, aiming to strengthen the enforcement of tobacco regulations and ensure accurate reporting and taxation of tobacco products in Nebraska.

Statutes affected:
Introduced: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4015
Final Reading: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4007, 77-4008, 77-4015
Slip Law: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4007, 77-4008, 77-4015