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Energy Drinks in Nebraska

  • Dec 3, 2013 | Gail Cole

 Nebraska: Not all energy drinks are the same. Not all energy drinks are taxed the same.

Your shopping list is long and obscure. Your inlaws are coming to Christmas Eve Dinner and the rest of the family arrives Christmas Day. You’re hosting a New Year’s Eve party. The shower is leaking. Oh, and you have a cold.

It’s time for an energy drink.

For many people, energy drinks are essential at this time of year. This makes a person wonder, “Are energy drinks subject to sales tax?”

Most consumers probably don’t care--especially when they just need to get things done. But grocers and other retailers who sell energy drinks do need to tax them correctly, lest the auditor come knocking.

Supplement or nutrition?

Not all energy drinks are alike, and not all energy drinks are taxed alike. To be helpful, the Nebraska Department of Revenue has published Important Sales Tax Information Regarding Energy Drinks. It reads:

“To determine whether drink products are subject to tax, you must review the label on the products. If the drink is labeled with the “Supplement Facts” box, the product is subject to tax as a dietary supplement. Drinks labeled with the “Nutrition Facts” box are exempt as a food product.”

However, any energy drink sold through a vending machine is subject to sales tax, no matter what is written on the label.

Now drink, and be energized.

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photo credit: Simon le nippon via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.