NE LB1124

Increases Nebraska's cigarette tax from $0.64 to $1.64 per pack of 20 cigarettes, effective July 1, 2026

Raises the General Fund allocation from cigarette tax proceeds from the equivalent of 49 cents to 52 cents per pack

Increases the distribution to the Nebraska Health Care Cash Fund by adding $1.25 million annually, with the equivalent of 97 cents of the tax specifically designated for Medicaid purposes

Adds legislative findings that Nebraska spends over $120 million annually in Medicaid expenses for smoking-related cancer, disease, and illness, and that Medicaid accounts for more than 20% of General Fund appropriations

Declares an emergency, taking effect immediately upon passage and approval, with operative date of July 1, 2026