PACT Act
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.
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PACT Act Registration and Reporting Requirements
The federal Prevent All Cigarette Trafficking (PACT) Act, 15, U.S.C. § 375, et seq. became effective June 30, 2010. The PACT Act amended provisions of the Jenkins Act (15 U.S.C. §§ 375 - 378) regarding the shipment and packaging of tobacco products, compliance with state tax and licensing requirements, and the filing of certain reports with the state tobacco tax administrator.
The PACT Act requires every person, including cigarette manufacturers, wholesalers, distributors, and delivery sellers, who sell, transfer, or ship for profit cigarettes, roll-your-own (RYO) tobacco, smokeless tobacco, and electronic nicotine delivery systems (ENDS) in interstate commerce to:
- Register with the United States (U.S.) Attorney General and the state tobacco tax administrator of each state into which shipments are made, and
- File monthly reports with the state tobacco tax administrator, no later than the 10th day of each month.
Registration
Every person who is required to register must file a statement with the U.S. Attorney General and the state tobacco tax administrator of the state into which shipments are made or advertisements or offers are disseminated.
The registration provisions apply to tobacco wholesalers, distributors, and manufacturers who ship cigarettes, RYO tobacco, smokeless tobacco, and ENDS in interstate commerce. Interstate commerce includes commerce between a state and any place outside the state, commerce between a state and any Indian country in the state, or commerce between points in the same state but through any place outside the state or through any Indian country. To register with DOR , complete Nebraska Cigarette and Tobacco Products License and Registration Application, Form 20CT, and Prevent All Cigarette Trafficking (PACT) Act Registration Form (ATF Form 5070.1).
Monthly Reporting Requirements
On or before the 10th day of each calendar month every person, including cigarette manufacturers, wholesalers, distributors, and delivery sellers who sell, transfer, ship, advertise, or offer for sale cigarettes, RYO tobacco, smokeless tobacco, and ENDS in interstate commerce must file a monthly report with the state tobacco tax administrator of the state into which shipments are made. The monthly report must set forth every shipment of cigarettes, RYO tobacco, smokeless tobacco, and ENDS made during the previous calendar month and be organized in the following manner:
- The name and address of the person to whom the shipment was made;
- The invoice or memoranda information relating to the specific customer (which must include brand and quantity of cigarettes, RYO tobacco, smokeless tobacco, and ENDS); and
- The name, address, and phone number of the person delivering the shipment to the recipient on behalf of the delivery seller.
The monthly reports for products other than cigarettes must be filed in Excel format using the State Tobacco/ENDS Pact Act Report, (PA-2) spreadsheet developed by the Federation of Tax Administrators and submitted through DOR's secure file sharing system here.
Cigarettes
All cigarette tax filers and cigarette PACT Act filers must use DOR’s e-file program. The return must be e-filed using DOR’s NebFile for Business filing program.
For cigarette tax filers, the PACT Act reporting requirement is fulfilled when you submit your monthly online return for the license you have acquired.
Electronic Nicotine Delivery Systems (ENDS)
Beginning March 28, 2021, the Preventing Online Sales of E-Cigarettes to Children Act amends the PACT Act and Jenkins Act to include ENDS. The definition of an ENDS includes:
- E-cigarettes;
- E-hookahs;
- E-cigars;
- Vape pens;
- Advanced refillable personal vaporizers;
- Electronic pipes; and
- Any component, liquid, part, or accessory of a device without regard to whether the component, liquid, part, or accessory is sold separately from the device.
Consumable material used in an ENDS will be subject to the Tobacco Products Tax Act beginning January 1, 2024. Nebraska will require monthly PACT ACT reporting for ENDS products beginning January 1, 2024.
Contact Information
If you have questions, please contact:
Garrett Nedved
Nebraska Department of Revenue
P.O. Box 94818
Lincoln, NE 68509-4818
Phone: 402-471-5862
Email: garrett.nedved@nebraska.gov
