Nebraska State Senator Jana Hughes has introduced a bill that could significantly affect the cost of alternative nicotine products such as pouches and electronic nicotine delivery systems. The proposed legislation, LB 125, seeks to impose regulation, licensure, and a 20% sales tax on these products, bringing them in line with existing taxes on cigarettes and other tobacco products.

“I think most people realize it’s not excise taxed now. It’s a nicotine substance. Why would we give this grouping of items an out? Vapes are taxed, cigarettes are taxed, tobacco patches are taxed,” Hughes said.

Hughes also raised concerns about Delta-8, a chemically altered form of marijuana, arguing that its modified structure should not exempt it from taxation.

“I have another bill out, LB 9, which says any nicotine analogue—so anything you’re changing the molecular structure of, but it still is a nicotine device or nicotine-like substance—will stay getting excise taxed,” Hughes said in a media statement.

Hughes emphasized the need to include all nicotine-related products under the same regulatory framework due to the variety of products available and the current lack of taxation on alternatives. If passed, the new tax would take effect on January 1 of next year.