What are the registration requirements and other formalities for tobacco retailers, wholesalers, manufacturers and distributors in Nebraska?

Wholesalers: Every resident and non-resident wholesalers in the State of Nebraska is required to obtain tobacco license from the Department of Revenue, Nebraska by submitting an application on a form 20CT which can be downloaded from the DOR site.

A directory license is also required to be obtained by the wholesaler that allows them to keep those cigarettes and tobacco products whose manufacturer are not listed in the State directory.

In addition to applying for a license, all wholesalers whether resident or non-resident is required to submit a surety bond of $ 10,000 along with the license application.

Cigarettes Manufacturer and Distributors: Similarly, every manufacturer and distributor who are selling cigarettes in the Nebraska are required to get registered with the State. Upon registration as a cigarette licensee, they will be issued a Nebraska identity number.

Likewise, every manufacturer who is engaged in the business of selling other tobacco products is required to obtain the license of selling the same in the Nebraska on the same application.

All the above mentioned licenses are issued for one year and renewed on an annual basis.

What is the license fee structure?

• Cigarette Wholesalers $500
• Cigarette Manufacturer No fee
• OTP Manufacturer $25
• Cigarette Distributor No fee

How can I get tobacco Retail license in Nebraska?

Retail license for cigarette and other tobacco products is issued by the local county offices of the city where your retail business is located. You can check the respective county official website for retail license application and print and submit the same after filing to the address provided on the form.

The tobacco retail license fee ranges from $10 to $25 depending upon the location of the retail store from city, village or a remote location.

Do I need to obtain any other license from the county office?

Yes, if you are in the wholesale business of selling cigarettes and other tobacco products in your country, you will fill the same form and submit it to the county office along with the appropriate fee.

Are these licenses renewable?

Yes, retail and wholesale licenses issued by the county offices are valid for one year and expired in December. After which they can be renewed for further one year.

Responsibilities of tobacco retailer:

• Every retailer is required to keep all the documents, invoices available for department inspection at any time.
• Retailer should not sell cigarette to any person less than 18 years of age.
• Every retailer should make sure to only sell cigarettes in packet of 20 or 25 cigarettes.

What are the tax rates on tobacco products?

• Tax rate on cigarettes is $0.64 per pack of 20 cigarettes.
• Tax on snuff is $0.44 per ounce and on other tobacco products is 20% of the wholesale price.

Tax on cigarette is charged at the time cigarette packet was stamped and for other tobacco products at the time when these products are brought into Nebraska.

Who is liable to pay cigarette and tobacco tax in Nebraska?

Cigarette Tax is paid by the stamping agent and Tax on other products is paid by the tobacco wholesaler.

Are there any additional taxes other than excise tax?

Yes, if you are in the business of selling cigarettes and other tobacco products, you are liable to pay State sales tax @ 5.5% plus local sales tax in addition to excise tax.

Please note that there is also an occupation tax in some locality that is included in the retail price of tobacco products.

What are the due dates for filing of tobacco return in Nebraska?

Due date for filing of cigarette tax return is 15th of every month. You can file these returns electronically on Form 55.

Due date for filing of other tobacco product return is the 10th of the month following the reporting month. These returns are usually submitted in paper form by downloading Form 56 from DOR website.

Penalty of late and non-filing of the return of due dates and filing of return without tax payment is 25% of the amount of tax due.