NE 57-22-1 Cigarette Tax 2022-09-02

Is Nebraska Revenue Ruling 57-08-1 on the minimum selling price of cigarettes still in effect?

Short answer: No -- it has been withdrawn. Revenue Ruling 57-22-1 (issued September 2, 2022) rescinds Revenue Ruling 57-08-1, 'Minimum Selling Price of Cigarettes' (issued August 12, 2008). The Department gives a specific reason: Nebraska Cigarette Tax Regulations 57-009 and 57-017 have been repealed, and all other cigarette tax regulations -- including those covering minimum pricing -- have been updated to reflect current statutes, so the old ruling is obsolete. For the current rules on minimum cigarette pricing, rely on the updated Nebraska cigarette tax statutes and regulations rather than the withdrawn 57-08-1.

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This page answers the general question as of 2022. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

This is a housekeeping ruling. The Nebraska Department of Revenue rescinds an older ruling: Revenue Ruling 57-08-1, "Minimum Selling Price of Cigarettes," which had been issued August 12, 2008.

Unlike some rescinding rulings, this one gives a reason: Nebraska Cigarette Tax Regulations 57-009 and 57-017 have been repealed, and all other cigarette tax regulations -- including those covering minimum pricing -- have been updated to reflect current statutes. Because the old ruling was built on regulations that no longer exist in their prior form, it is obsolete and is withdrawn.

What this means for you

Cigarette wholesalers, distributors, and retailers

Do not rely on the withdrawn Revenue Ruling 57-08-1 for how Nebraska's minimum cigarette pricing works. The Department points you instead to the current cigarette tax statutes and the updated regulations, which now reflect the current law on minimum pricing. If you set or audit cigarette prices, work from those current sources.

Anyone tracking Nebraska tobacco tax guidance

This confirms that the minimum-selling-price rules were reorganized into the updated regulations rather than eliminated -- the guidance moved, and the standalone 2008 ruling was retired to avoid conflicting with the current regulations.

Common questions

Q: What does Revenue Ruling 57-22-1 do?
A: It rescinds Revenue Ruling 57-08-1, "Minimum Selling Price of Cigarettes" (issued August 12, 2008).

Q: Why was 57-08-1 rescinded?
A: Because Nebraska Cigarette Tax Regulations 57-009 and 57-017 were repealed and the remaining cigarette tax regulations -- including those on minimum pricing -- were updated to reflect current statutes, making the 2008 ruling obsolete.

Q: Does Nebraska no longer have minimum cigarette pricing rules?
A: The ruling does not say that. It says minimum-pricing coverage now lives in the updated regulations and statutes; rely on those current sources rather than the withdrawn ruling.

Citations and references

Rescinds: Revenue Ruling 57-08-1, "Minimum Selling Price of Cigarettes," issued August 12, 2008.
Reason given: repeal of Nebraska Cigarette Tax Regulations 57-009 and 57-017 and update of the remaining cigarette tax regulations to reflect current statutes.

Source

Original ruling text

Revenue Ruling 57-22-1
Cigarette Tax

September 2, 2022

Revenue Ruling Rescinded
The following revenue ruling is hereby rescinded because Nebraska Cigarette Tax
Regulations 57-009 and 57-017 have been repealed and all other cigarette tax regulations,
including those covering minimum pricing, have been updated to reflect current statutes:
57-08-1 Minimum Selling Price of Cigarettes issued August 12, 2008.

APPROVED:

Tony Fulton
Tax Commissioner
September 2, 2022

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

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