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, and smokeless tobacco 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.
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, and smokeless tobacco 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.
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, and smokeless tobacco 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, and smokeless tobacco 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, and smokeless tobacco); 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 should be filed using standard file formats such as database file (.dbf), delimited/plain text file (.txt), or Excel spreadsheet (.xlsx).
Delivery seller is any person who makes a delivery sale. Delivery sale means any sales of cigarettes, ryo tobacco, or smokeless tobacco to a consumer if:
- The consumer submits the order for sale by means of a telephone or other method of voice transmission, the mail, the Internet or other online service, or the seller is otherwise not in the physical presence of the buyer when the request for purchase or order is made; or
- The cigarettes, ryo tobacco, or smokeless tobacco are delivered to the buyer by common carrier, private delivery service, or other method of remote delivery, or the seller is otherwise not in the physical presence of the buyer when the buyer obtains possession of the cigarettes, ryo tobacco, or smokeless tobacco.
Every delivery seller must comply with all shipping and record keeping requirements, and all state, local, tribal, and other laws generally applicable to sales of cigarettes or smokeless tobacco as if the delivery sales occurred entirely within the specific state. This includes:
- Laws imposing excise taxes;
- Licensing and tax-stamping requirements;
- Restrictions on sales to minors;
- Tax collection requirements; and
- Other payment obligations or legal requirements relating to the sale, distribution, or delivery of cigarettes, ryo tobacco, or smokeless tobacco.
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:
- 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.
Nebraska does not subject ENDS products to an excise tax. Nebraska will not require monthly PACT ACT reporting for ENDS products.
Violators of the the PACT Act are subject to criminal and civil penalties.
The registration statement, monthly reports, and database files (including Excel spreadsheets), as described above should be sent through ShareFile.
If you have questions, please contact:
Nebraska Department of Revenue
P.O. Box 94818
Lincoln, NE 68509-4818