Information for Cigarette and Tobacco Products Retailers
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.
This guidance document may change with updated information or added examples. DOR recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.
Cigarette & Tobacco Retailers
Businesses that sell cigarettes and other tobacco products including electronic nicotine delivery systems (ENDS) containing consumable material at retail must:
- Be registered with the local city or county clerk.
- Sell only certified brands of cigarettes and roll-your-own (RYO) tobacco products.
- Ensure every pack of cigarettes offered for sale is stamped with a complete readable Nebraska tax stamp.
- Purchase tobacco products from distributors and wholesalers licensed by the State of Nebraska and maintain records to show this.
- Purchase tobacco products from distributors and wholesalers licensed by the State of Nebraska and maintain records to show this.
- Follow minimum pricing guidelines.
- Only sell cigarettes in the manufacturer’s unopened package of 20. Cigarettes may not be sold individually, i.e. by the stick.
- Not sell tobacco products to anyone under 21 years.
Certified Cigarette Brands
The State of Nebraska requires tobacco manufacturers to annually certify their brands of cigarettes and RYO for sale in this state. DOR maintains a directory of certified cigarette and RYO brands on its website. Only certified brands of cigarettes and RYO can be sold in this state. Any brands not on the certified tobacco brands directory will be seized. Notice will be posted on the website when brands are added to or removed from the directory.
Electronic Nicotine Delivery Systems (ENDS) Certified Models
A manufacturer of ENDS that are sold at retail in this state must submit a certification with DOR. The initial certification must be submitted by April 1, 2025. Beginning October 1, 2025, all approved ENDS manufacturers and ENDS authorized for sale in this state will be listed on DOR’s website. Only certified ENDS can be sold in this state. Notice will be posted on the website when ENDS are added to or removed from the directory.
Purchase from Unlicensed Wholesaler or Stamping Agent
If you import cigarettes or tobacco products including ENDS into Nebraska and purchase from a seller that is not licensed with the state, contact DOR to discuss additional regulatory requirements.
RYO Machines
Any person that maintains or provides a machine at a retail establishment that enables any consumer to process tobacco or any product that is made or derived from tobacco into a roll or tube is deemed to be a manufacturer of cigarettes.
If you have this type of machine, you should contact DOR for regulatory requirements.
Nebraska Tax Stamp
Nebraska uses a heat-applied tax stamp. The cigarette tax stamp contains the word “Nebraska,” a 5 or 10-digit serial number, and specifies a 20-stick pack.
Licensed stamping agents purchase and affix the Nebraska tax stamp to each pack of cigarettes they sell in this state. The stamp is proof that the tax has been paid. Packs without a complete readable Nebraska tax stamp, or that have another state’s tax stamp, will be seized and may be subject to penalty.
A complete readable stamp is defined as a stamp containing the legible 5 or 10-digit stamp number and/or two thirds of the tax stamp.
Before shelving packs of cigarettes for sale, check the bottom of the packs to be certain they bear the NE tax stamp. If they do not, return them to your supplier.
Cigarette Minimum Pricing
The minimum wholesale and retail selling prices are calculated and determined by DOR for each brand and maintained on DOR’s website.
Retailers participating in a cigarette buy‑down promotion may use promotional signs and displays to advertise the value of a manufacturer’s buy‑down or the selling price of the cigarettes after allowance for the buy‑down amount, even when the buy‑down amount reduces the sales price below the legal minimum retail selling price.
The promotional signs and displays must identify the full retail selling price prior to the buy-down amount and indicate that the sales tax is computed on the full retail selling price prior to the allowance for the buy-down amount.
Cigarette Tax
The cigarette tax is imposed on the consumer but prepaid by the stamping agent and built into the retail price of cigarettes. The current rate is $0.64 per pack for 20-stick packs.
Tobacco Products Other Than Snuff and ENDS
The tax on tobacco products is imposed on the wholesaler, or first owner in this state, and built into the retail price. The current rate is 20% of the wholesale purchase price.
Snuff
The tax on snuff is imposed on the wholesaler, or first owner in this state, and built into the retail price. The current rate is $0.44 per ounce.
ENDS Containing Consumable Material
The tax rate of ENDS containing 3 mL or less of consumable material is $.05/mL. The tax rate of ENDS containing greater than 3 mL of consumable material is 10% of the purchase price paid by the first owner or the price at which the first owner who made, manufactured, or fabricated the ENDS sells the item to others.
State & Local Sales Tax
Retail sales of cigarettes and other tobacco products are subject to the state sales tax plus the local rate in addition to any cigarette or tobacco tax. Sales tax is required to be added to the retail price and collected from the customer at the time of sale.
Tobacco Occupation Tax
A city may elect to impose an occupation tax on tobacco products which becomes part of the retail selling price of the product and is subject to sales tax.
Inspection of Premises
DOR may examine the books, papers, and records of cigarette and tobacco retailers in this state for the purpose of determining whether the tax on cigarettes and other tobacco products has been fully paid. DOR may investigate and examine the stock of cigarettes or tobacco products in or upon any premises where the cigarettes or tobacco products are possessed, stored, or sold. Each retailer must keep documents establishing that the cigarettes and tobacco products in the retailer’s inventory were purchased from a wholesaler, distributor or stamping agent licensed by the State of Nebraska.
Retailers should anticipate inspections by DOR.
If you receive a penalty related to the seizure of cigarettes inspected at your retail location, you may request an abatement of the penalty by using Request for Abatement of Penalty, Form 21, which can be found on DOR’s website.
