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Nebraska Legislature advances bill taxing alternative nicotine products after heated debate
Summary
Lawmakers advanced LB9 to engrossing after adopting a General Affairs committee amendment that adds a 20% wholesale excise on alternative nicotine products, rejects a last-minute amendment to tax by weight, and projects several million dollars of new revenue over coming fiscal years.
The Nebraska Legislature on the floor advanced Legislative Bill 9, which updates the Tobacco Products Tax Act to bring alternative nicotine products — including nicotine pouches and other “nicotine analogs” — under state excise taxes and enforcement tools.
The bill, introduced on general file by Senator Hughes and amended on the floor with General Affairs Committee amendment AM549 (which folded LB125 into LB9), was advanced to E&R initial after the body adopted the committee amendment and rejected a separate floor amendment proposing a weight-based tax. Senator Hughes explained the bill’s core purpose as “to update our existing law to improve the regulation and enforcement of the Tobacco Products Tax Act” and to “future proof” taxation for new nicotine products.
Why it matters: LB9 would apply a 20% wholesale…
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