State lawmakers have broadened a measure related to alternative nicotine products to add a 20% wholesale tax.

Originally, LB 9 was designed to broaden the definition of alternative nicotine products to include nicotine analogues — synthetic products that mimic the effects of nicotine.

Nebraska is “playing whack-a-mole” in trying to catch up to an industry that constantly changes nicotine products slightly, said the sponsor, Sen. Jana Hughes of Seward. She said the bill would catch any “nicotine-like” product that companies release.

“Next year, when the new product comes out, we don’t have to bring back a bill to grab on to that new product,’ Hughes said. “It’ll automatically fall under our regulation.”

An amendment, adopted 39-0, would add a 20% wholesale tax on alternative nicotine products beginning Jan. 1.

Hughes said the tax is not meant to single out nicotine pouches, but simply to impose the same tax rate currently applied to tobacco alternatives.

Nicotine pouches are small bags that contain nicotine and other ingredients, but no tobacco leaf. They may be less harmful than smoking, but they can cause side effects and addiction, according to the WebMD website.

“We felt that it was fair and equitable to tax alternative nicotine products at that same rate,” Hughes said. “We looked around at other states … and we found that Maine taxes (nicotine) pouches at 43% of the wholesale price and Minnesota taxes them at 95% of the wholesale price.”

Lawmakers voted 41-0 on March 27 to advance LB 9 to the second round.

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