SALT Report 1426 – The Nebraska Department of Revenue issued a sales and use tax notice regarding the taxability of energy drinks. The Department ruled that energy drinks with a “supplement facts” box on the label are taxable and considered a dietary supplement.
The Department defines dietary supplements as any product that is intended to supplement the diet and has a “supplement facts” box on the label. Nebraska Code of Federal Regulations, title 21, section 101.36; requires such a label if a product contains one or more of the following ingredients:
- A vitamin, a mineral, an herb or other botanical, an amino acid, a dietary substance for use by humans to supplement the diet by increasing the total dietary intake, and a concentrate, metabolite, constituent, extract, or a combination of any of these ingredients, and
- Is intended for ingestion in tablet, capsule, powder, soft gel, gel cap, or liquid form, or if not intended for ingestion in such a form, is not presented as conventional food and is not represented for use as the sole item of a meal or of the diet.
Additionally, all drinks sold through a vending machine are taxable.
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