Taxation of Energy Drinks in Nebraska

Mar 7th, 2012

The Nebraska Department of Revenue recently provided guidance to grocers regarding the taxability of energy drinks (http://www.revenue.state.ne.us/info/energy_drinks.html). Energy drinks that are labeled with a "Supplement Facts" box will be subject to tax as a dietary supplement. However, energy drinks that are labeled with a "Nutrition Facts" box will be exempt from tax as a food product. All energy drinks, regardless of whether they are labeled with a "Supplement Facts" or "Nutrition Facts" panel, will be subject to tax if they are sold through a vending machine.