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Senate amends tobacco excise law to require remote retailers to collect Nebraska tax
Summary
Lawmakers adopted amendments to LB 212 to create a 'remote retail seller' category, impose licensing and recordkeeping, set a $100,000 (or 200 transactions) economic nexus, and delay implementation until Jan. 1, 2027; committee and floor amendments were adopted and the bill advanced.
The Nebraska Senate adopted amendments to LB 212 to modernize the tobacco excise tax and require out-of-state remote retailers selling directly to Nebraska consumers to collect and remit excise taxes.
Senator Werticamper introduced LB 212 as a modernization of statutes that did not clearly address remote retail sales. Committee amendment AM 3 19 and Senator Werticamper’s amendment AM 17 20 were presented on the floor. Senator von Gillard described the committee amendment as ensuring out-of-state remote tobacco retailers collect and remit the same excise tax as in‑state sellers, and Senator Werticamper outlined AM 17 20’s core provisions.
Under AM 17 20, the bill creates a new category of "remote retail seller" for cigars and certain tobacco products sold directly to consumers by phone, mail or internet and delivered by common carrier. Remote sellers that meet an economic nexus threshold ($100,000 in sales or 200 transactions) must obtain a license from the Tax Commissioner, keep itemized records, and remit Nebraska’s tobacco excise tax. The amendment included a delayed operative date of Jan. 1, 2027, to give the Department of Revenue and industry time to prepare.
Floor debate addressed fiscal notes: senators noted that earlier fiscal estimates reflected a different cap and did not account for the amendments. Floor leaders said an updated fiscal note will be requested once amendments pass.
The Senate adopted AM 17 20 (Clerk recorded 41 ayes, no nays), then adopted AM 3 19 (43 ayes, no nays), and advanced LB 212, as amended, to E & R initial (Clerk recorded 44 ayes, no nays).
