This bill amends several sections of Nebraska's tax code, specifically focusing on the cigarette tax and the Tobacco Products Tax Act. It introduces a new tax structure where the tax on cigarettes is set at thirty percent of the purchase price paid by the retail dealer, replacing the previous fixed rate of sixty-four cents per package. Additionally, the bill modifies the distribution of tax proceeds, allocating fifty percent to the General Fund and establishing new percentages for various funds, including two percent to the Nebraska Outdoor Recreation Development Cash Fund, ten percent to the Health and Human Services Cash Fund, twenty-six percent to the Building Renewal Allocation Fund, five percent to the Nebraska Public Safety Communication System Cash Fund, and six percent to the Nebraska Health Care Cash Fund. A new allocation of one percent is also introduced for the Nebraska Capital Construction Fund.

Furthermore, the bill revises the tax rates for tobacco products, imposing a thirty percent tax on snuff, electronic nicotine delivery systems, alternative nicotine products, and other tobacco products, replacing previous fixed rates. It also specifies that the funds collected will be used for cancer research and related expenses, with a focus on grants and contracts for research on cancer and smoking diseases. The act is set to become operative on July 1, 2026, and includes a declaration of emergency for immediate effect upon passage. The original sections being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 77-2602, 77-4008, 81-638