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LB 9

Change provisions relating to cigarette taxes and the Tobacco Products Tax Act and provide for regulation of products containing nicotine analogues

109th Legislature (2025-2026) Introduced by Jana Hughes

LB9 extends Nebraska tobacco laws to include nicotine analogues and alternative nicotine products, imposing a 20% wholesale tax and stronger enforcement.

Provisions/portions of LB125 amended into LB9 by AM549
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Bill Summary · LB 9

Summary — LB 9 (2025)

Title: Change provisions relating to cigarette taxes and the Tobacco Products Tax Act and provide for regulation of products containing nicotine analogues
Introduced by: Sen. Jana Hughes
Approved by Governor: April 29, 2025 (Operative date: January 1, 2026)

Purpose

LB 9 expands Nebraska’s tobacco/ nicotine regulatory and tax framework to explicitly cover “nicotine analogues” (synthetic or chemically similar substances) and to tighten enforcement, assessment, seizure, and penalty provisions under the Tobacco Products Tax Act. Provisions of LB125 (including taxation of alternative nicotine products) were incorporated into LB 9 by committee amendment AM549.

Key definitions added or changed

  • Nicotine analogue: a substance with (a) a chemical structure substantially similar to nicotine; or (b) a central nervous system effect substantially similar to or greater than nicotine.
  • Alternative nicotine product: any noncombustible product containing nicotine or a nicotine analogue intended for human consumption (excludes ENDS, cigarettes, cigars, or FDA-regulated drug/device products).
  • Electronic Nicotine Delivery System (ENDS): broadened to expressly include devices/substances that deliver nicotine or nicotine analogues in vapor/aerosol form.

Taxation changes

  • Alternative nicotine products (including products containing nicotine analogues) are placed under the Tobacco Products Tax Act. The committee amendment (from LB125) imposes a 20% tax on the wholesale price of alternative nicotine products (consistent with taxation treatment of non-specified tobacco products).

Enforcement, assessment, and timelines

  • Sellers of cigarettes must file cigarette tax returns; the Tax Commissioner may review and notify filers of incorrect or unpaid returns.
  • Statute of limitations for issuing deficiency determinations: generally 3 years after the end of the month following the return period or filing date (whichever is later). Extended to 6 years if no return was filed, a false/fraudulent return was filed, or the return omitted 25%+ of tax. The taxpayer and commissioner may extend these periods by written agreement.
  • Tax Commissioner may adopt rules and enforce these provisions; authority expanded to stamping agents, wholesale and retail dealers who file monthly reports.

Penalties, suspension, and seizure

  • Administrative penalties: after notice and hearing, the Tax Commissioner may suspend or revoke licenses and may impose civil penalties up to $5,000 for violations of the Tobacco Products Tax Act and implementing rules.
  • Products involved in violations are declared contraband. The Tax Commissioner (or designated agents) and law enforcement may seize contraband tobacco products without a warrant when directed by the commissioner.
  • Seized products may be destroyed; disposal costs are charged to the person from whom products were seized. The commissioner may return seized goods if there is reason to believe there was no willful tax evasion.
  • Immunity: the commissioner, agents, employees, and peace officers acting under the seizure authority are protected from civil liability for seizures.

Who is affected

  • Manufacturers, importers, stamping agents, wholesalers, retailers and delivery-sale vendors of cigarettes, ENDS, and alternative nicotine products (including products with nicotine analogues).
  • Tax Commissioner’s cigarette tax division and enforcing law enforcement.
  • Consumers indirectly affected by taxation and product regulation.

Procedural / Legislative status

  • Advanced from General Affairs with AM549 (which incorporated LB125 provisions); AM646 to AM549 was considered. ER and enrollment amendments adopted. Final passage on April 25, 2025 (Final Reading vote 34–10–5). Governor approved April 29, 2025. Operative date: January 1, 2026.
  • Fiscal notes were filed (details not included here).

This bill broadens regulatory reach to include synthetic nicotine-like substances, brings alternative nicotine products into the state tobacco tax and enforcement regime, tightens assessment timelines, and strengthens administrative enforcement tools (suspension/revocation, monetary penalties, and seizure authority).

Compiled from official sources — confirm details with the bill’s official record.

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