LINCOLN- The Legislature’s Revenue Committee held two final hearings on Wednesday morning to discuss potential amendments to Legislative Bill 9. The hearings focused on new taxes for flavored nicotine pouches and the tax exemption for residential electricity. The amendments under consideration are AM 62, which proposes a 10 cents per ounce tax on "alternative nicotine products," and AM 63, which seeks to exempt residential electricity from sales taxes.

State Sen. Jana Hughes, who introduced LB 9, supports the new nicotine tax as part of her broader efforts to address vaping and teen usage. Hughes plans to explore further regulation of oral nicotine pouches in the 2025 session. The committee's hearings will help finalize the amendment proposal, which aims to reduce the number of sales and use tax exemptions and slightly increase certain "sin" taxes.

Additionally, the revised LB 9 aims to lower the maximum school tax rates for operational expenses to 25 cents, with the state covering the difference and potentially taking on substantial property tax burdens for natural resources districts and county jails. After the hearings, the committee will determine whether to advance the amended LB 9 to the floor for debate.

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