Cigarettes and Tobacco Products

ORS 323.031
Additional tax imposed

  • rate


(1)

Notwithstanding ORS 323.030 (Tax imposed) (2) and in addition to and not in lieu of any other tax, every distributor shall pay a tax upon distributions of cigarettes at the rate of 30 mills for the distribution of each cigarette in this state.

(2)

Any cigarette for which a tax has once been imposed under ORS 323.005 (Short title) to 323.482 (Offense of unlawful distribution of cigarettes) may not be subject upon a subsequent distribution to the taxes imposed by ORS 323.005 (Short title) to 323.482 (Offense of unlawful distribution of cigarettes). [2002 s.s.3 c.2 §2(1),(2); 2003 c.804 §§5c(1),(2),5e(1),(2)]
Note: The amendments to 323.031 (Additional tax imposed) by section 1, chapter 525, Oregon Laws 2019, were referred to the people for their approval or rejection at the regular general election to be held throughout this state on November 3, 2020. See section 22, chapter 525, Oregon Laws 2019. If chapter 525, Oregon Laws 2019, is approved by the people, the amendments apply to cigarette tax reporting periods beginning on or after January 1, 2021. See section 17, chapter 525, Oregon Laws 2019. The text that, if chapter 525, Oregon Laws 2019, is approved by the people, applies to tax reporting periods beginning on or after January 1, 2021, is set forth for the user’s convenience.
323.031 (Additional tax imposed). (1) Notwithstanding ORS 323.030 (Tax imposed) (2) and in addition to and not in lieu of any other tax, every distributor shall pay a tax upon distributions of cigarettes at the rate of 30 mills for the distribution of each cigarette in this state.

(2)

Notwithstanding ORS 323.030 (Tax imposed) (2) or subsection (1) of this section and in addition to and not in lieu of any other tax, every distributor shall pay a tax upon distributions of cigarettes at the rate of 100 mills for the distribution of each cigarette in this state.

(3)

Any cigarette for which a tax has once been imposed under ORS 323.005 (Short title) to 323.482 (Offense of unlawful distribution of cigarettes) may not be subject upon a subsequent distribution to the taxes imposed by ORS 323.005 (Short title) to 323.482 (Offense of unlawful distribution of cigarettes).
Note: Chapter 525, Oregon Laws 2019, was referred to the people for their approval or rejection at the regular general election to be held throughout this state on November 3, 2020. See section 22, chapter 525, Oregon Laws 2019. The text of sections 7 to 10, chapter 525, Oregon Laws 2019, that will take effect if chapter 525, Oregon Laws 2019, is approved by the people, is set forth for the user’s convenience.
Sec. 7. (1) In addition to and not in lieu of any other tax, for the privilege of holding or storing cigarettes for sale, use or consumption, a floor tax is imposed upon every dealer at the rate of 100 mills for each cigarette in the possession of or under the control of the dealer in this state at 12:01 a.m. on January 1, 2021.

(2)

By January 20, 2021, every dealer must file a report with the Department of Revenue in such form as the department may prescribe. The report must state the number of cigarettes in the possession of or under the control of the dealer in this state at 12:01 a.m. on January 1, 2021, and the amount of tax due. Each report must be accompanied by a remittance payable to the department for the amount of tax due.

(3)

One-sixth of the amount of tax required to be paid with respect to the affixed stamps shall be computed pursuant to this section and remitted with the dealer’s report and by the 20th of each month thereafter until the total tax under this section is paid. Any amount of tax that is not paid within the time specified for the filing of the report or payment of the tax shall bear interest at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) per month, or fraction of a month, from the date on which the tax is due to be paid, until paid.

(4)

As used in this section, “dealer” has the meaning given that term in ORS 323.010 (Definitions for ORS 323.005 to 323.482). [2019 c.525 §7]
Sec. 8. Notwithstanding ORS 323.030 (Tax imposed) (3) or 323.031 (Additional tax imposed) (3), for the privilege of distributing cigarettes as a distributor, as defined in ORS 323.015 (“Distribution,” “distributor” and “distributor engaged in business in this state” defined), and for holding or storing cigarettes for sale, use or consumption, a floor tax and cigarette adjustment indicia tax is imposed upon every distributor in the amount of $2.50 for each Oregon cigarette tax stamp bearing the designation “25,” and in the amount of $2 for each Oregon cigarette tax stamp bearing the designation “20,” that is affixed to any package of cigarettes in the possession of or under the control of the distributor, or that is unaffixed, at 12:01 a.m. on January 1, 2021. [2019 c.525 §8]
Sec. 9. (1) Every distributor, as defined in ORS 323.015 (“Distribution,” “distributor” and “distributor engaged in business in this state” defined), must take an inventory as of 12:01 a.m. on January 1, 2021, of all packages of cigarettes to which are affixed Oregon cigarette tax stamps and of all unaffixed Oregon cigarette tax stamps in the possession of or under the control of the distributor.

(2)

Every distributor must file a report with the Department of Revenue by January 20, 2021, in such form as the department may prescribe, showing:

(a)

The number of Oregon cigarette tax stamps, with the designations of the stamps, that were affixed to packages of cigarettes in the possession of or under the control of the distributor at 12:01 a.m. on January 1, 2021; and

(b)

The number of unaffixed Oregon cigarette tax stamps, with the designations of the stamps, that were in the possession of or under the control of the distributor at 12:01 a.m. on January 1, 2021.

(3)

One-sixth of the amount of tax required to be paid with respect to the affixed or unaffixed Oregon cigarette tax stamps shall be computed pursuant to section 8 of this 2019 Act and remitted with the distributor’s report and by the 20th of each month thereafter until the total tax under section 8 of this 2019 Act is paid. Any amount of tax not paid within the time specified for the filing of the report and payment of the tax shall bear interest at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) per month, or fraction of a month, from the due date of the report until paid. [2019 c.525 §9]
Sec. 10. All moneys received by the Department of Revenue from the taxes imposed by sections 7 and 8 of this 2019 Act shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445 (Definition for ORS 293.445 to 293.460). After payment of refunds, the remaining balance shall be credited to the Oregon Health Authority Fund established by ORS 413.101 (Oregon Health Authority Fund). [2019 c.525 §10]
Chapter 323

Notes of Decisions

This chapter was not intended to impose a tax on cigarettes sold by an Oregon distributor, to be shipped out of state and sold out of state to ultimate consumers for use out of state. Carter & Son v. Dept. of Rev., 5 OTR 379 (1974)


Source

Last accessed
Jun. 26, 2021