NE LB1238

Cigarette tax changes from 64 cents per pack to 30% of the purchase price paid by the retail dealer, effective July 1, 2026

Snuff tax increases from 44 cents per ounce to 30% of purchase price; electronic nicotine delivery systems (over 3ml) increase from 10% to 30% of purchase price; alternative nicotine products and other tobacco products increase from 20% to 30% of purchase price

Tax distribution shifts from fixed dollar amounts to percentages: 50% to General Fund, 26% to Building Renewal Allocation Fund, 10% to Health and Human Services Cash Fund, 6% to Nebraska Health Care Cash Fund, 5% to Nebraska Public Safety Communication System Cash Fund, 2% to Nebraska Outdoor Recreation Development Cash Fund, and 1% to new Nebraska Capital Construction Fund

Any cigarette tax proceeds remaining after required distributions go to the Nebraska Capital Construction Fund

Declared an emergency measure, taking effect when passed and approved, with operative date of July 1, 2026