Change the cigarette tax and distribution of such tax and change taxes imposed under the Tobacco Products Tax Act

Nebraska's LB 1238 increases the cigarette tax to 64 cents per package (for up to 20 cigarettes) and changes how the revenue is distributed. The tax applies to wholesale cigarette distributors, and the collected funds will be allocated as follows: 50% to the General Fund, 2% to Outdoor Recreation, 10% to Health Services, 26% to Building Renewal, 5% to Public Safety Communications, 6% to Health Care, and 1% to Capital Construction. These funding allocations take effect July 1, 2026, with specific minimums tied to historical fiscal years. The bill also harmonizes tax provisions under the Tobacco Products Tax Act and repeals prior sections.