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Senators consider capping premium-cigar excise tax to help brick-and-mortar retailers
Summary
LB 212 would cap the 20% ad valorem excise tax on premium cigars at $0.50 per cigar to help Nebraska cigar shops compete with online sellers; proponents said the change would level the playing field and could boost in‑state sales, while senators questioned the bill’s $500,000 fiscal note and the logistics of collecting tax on remote sales.
Senator Dave Wardekamper introduced LB 212 to the Revenue Committee, proposing a $0.50-per-cigar cap on the current 20% ad valorem excise tax for premium cigars. Under the sponsor’s description, the bill would leave the 20% rate in place but limit the tax liability to $0.50 on any cigar for which 20% of the price would exceed that cap.
Wardekamper told senators the measure is intended to help Nebraska brick-and-mortar tobacconists and cigar lounges compete with online sellers and neighboring states with lower or capped cigar taxes. "This proposed cap is a proven policy solution that has been adopted in 15 states across the country," he said, and…
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