Nebraska Information
Tobacco Taxes
Nebraska's excise tax per pack of cigarettes: $0.640
Nebraska's excise tax collection for the
fiscal year ending June 2002: $45,029,000
Sales tax on tobacco products: 5.50%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
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Who Profits from
Cigarette Sales? 
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Comparing Excise Taxes on Cigarettes, Beer and Wine
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Number of six-packs of beer that must be sold in Nebraska to produce the same state excise tax revenue generated by one carton of cigarettes: 26.3 |
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Number of bottles of wine that must be sold in Nebraska to produce the same state excise tax revenue generated by one carton of cigarettes: 22.9 |
Nebraska Smokers' Contributions
to the State Economy - 2002
Nebraska smokers comprise only 20.2%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
45,028,920 |
Smokers Pay Sales Taxes2 |
$ |
19,865,700 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
42,529,269 |
|
$ |
107,423,889 |
Smokers' Economic/Tax Profile 2001
Nebraska smokers' median household income |
$ |
33,517 |
Nebraska nonsmokers' median household income |
$ |
38,117 |
- Working Families Pay More1
36.7% of NE smokers had household income LESS than $25,000
11.3% of NE smokers had household income EQUAL to or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability in 20024
Total average paid per Nebraska smoker in excise and sales taxes |
$ |
254 |
Cost per Nebraska smoker for settlement payments to Nebraska |
$ |
167 |
Total annual payment to Nebraska per smoker |
$ |
421 |
Total annual payment to Nebraska per nonsmoker |
$ |
0 |
Nebraska Smoker Facts 5
- Total smokers' payments to Nebraska in FY2002 were:
- Six times as large as FY2001 state excise taxes on alcoholic beverages ($17.3 million).
- Three times as large as FY2001 insurance premium tax collections ($33.7 million).
- Nearly four-fifths (78%) as large as FY2001 corporate net income tax receipts ($138 million).
- The total amount smokers paid to Nebraska in FY2002 was enough to cover the costs of FY2002 appropriations for:
- Community Behavioral Health ($28.2 million) AND Developmental Disabilities ($51 million) AND Game and Parks ($10.1 million) COMBINED
OR
- Corrections ($106.1 million)
OR
- State Patrol ($38.2 million) AND Community Colleges ($65.4 million) COMBINED.
- In 1997, smokers provided 2,961 jobs that paid an additional $3.6 million to the state in personal and corporate income taxes.6
TOTAL SMOKER CIGARETTE PAYMENTS TO NEBRASKA |
|
Per year: |
$ |
107,423,889 |
Per day: |
$ |
294,111 |
Per hour: |
$ |
12,255 |
Per minute: |
$ |
204 |
Per second: |
$ |
3.40 |
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CIGARETTES DON'T PAY TAXES -
NEBRASKA SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax and Budget Comparisons are from the U.S. Census Bureau and Nebraska Department of Administrative Service's Budget Division, Governor's Budget Recommendation, Ninety-Seventh Legislature, Second Special Session, 25 July 2002; online at http://www.budget.state.ne.us/das_budget/special02/recomm02.PDF.
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States
Master Settlement Agreement Payments To Date
$140,845,469 has been paid to Nebraska since the Master Settlement Agreement was signed on November 23, 1998.
A summary of Nebraska state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products. |
Restricted Products |
Tobacco in any form whatever, or any cigarettes, or cigarette paper. |
Fine/Penalty Schedule for Selling to Minors |
Violators will be guilty of a Class III Misdemeanor punishable by a fine of up to $500 and/or up to 3 months imprisonment. Any licensee who shall willingly allow to be taken from his place of business by any person under the age of 18 years, any cigars, tobacco, cigarettes, or cigarette material, shall also be guilty of a Class III Misdemeanor and subject to the penalties outlined above. Retailers are also subject to license revocation at the discretion of the court. |
Affirmative Defense |
None. |
Minor Possession |
The use of tobacco in any form, or use of a false ID by a minor to obtain tobacco is prohibited. Violators will be guilty of a Class V Misdemeanor punishable by a fine of up to $100. However, a minor may be freed from prosecution, if he furnishes evidence for the conviction of the persons selling or giving him the tobacco products. |
Sign Requirement
 |
No sign requirement. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Nebraska to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
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