Cigarettes and Tobacco Products

ORS 323.500
Definitions for ORS 323.500 to 323.645


As used in ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), unless the context otherwise requires:

(1)

“Business” means any trade, occupation, activity or enterprise engaged in for the purpose of selling or distributing tobacco products in this state.

(2)

“Cigar” means a roll for smoking that is of any size or shape and that is made wholly or in part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco and if 1,000 of these rolls collectively weigh more than three pounds. “Cigar” does not include a cigarette, as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(3)

“Consumer” means any person who purchases tobacco products in this state for the person’s use or consumption or for any purpose other than for reselling the tobacco products to another person.

(4)

“Contraband tobacco products” means tobacco products or packages containing tobacco products:

(a)

That do not comply with the requirements of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title);

(b)

That do not comply with the requirements of the tobacco products tax laws of the federal government or of other states;

(c)

That bear trademarks that are counterfeit under ORS 647.135 (Trademark counterfeiting) or other state or federal trademark laws; or

(d)

That have been sold, offered for sale or possessed for sale in this state in violation of ORS 180.486 (Prohibited conduct).

(5)

“Department” means the Department of Revenue.

(6)

“Distribute” means:

(a)

Bringing, or causing to be brought, into this state from without this state tobacco products for sale, storage, use or consumption;

(b)

Making, manufacturing or fabricating tobacco products in this state for sale, storage, use or consumption in this state;

(c)

Shipping or transporting tobacco products to retail dealers in this state, to be sold, stored, used or consumed by those retail dealers;

(d)

Storing untaxed tobacco products in this state that are intended to be for sale, use or consumption in this state;

(e)

Selling untaxed tobacco products in this state; or

(f)

As a consumer, being in possession of untaxed tobacco products in this state.

(7)

“Distributor” means:

(a)

Any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale;

(b)

Any person who makes, manufactures or fabricates tobacco products in this state for sale in this state;

(c)

Any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retail dealers in this state, to be sold by those retail dealers;

(d)

Any person, including a retail dealer, who sells untaxed tobacco products in this state; or

(e)

A consumer in possession of untaxed tobacco products in this state.

(8)

“Manufacturer” means a person who manufactures tobacco products for sale.

(9)

“Moist snuff” means:

(a)

Any finely cut, ground or powdered tobacco that is not intended to be smoked or placed in a nasal cavity; or

(b)

Any other product containing tobacco that is intended or expected to be consumed without being combusted.

(10)

“Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train or vending machine.

(11)

“Retail dealer” means any person who is engaged in the business of selling or otherwise dispensing tobacco products to consumers. The term also includes the operators of or recipients of revenue from all places such as smoke shops, cigar stores and vending machines, where tobacco products are made or stored for ultimate sale to consumers.

(12)

“Sale” means any transfer, exchange or barter, in any manner or by any means, for a consideration, and includes and means all sales made by any person. It includes a gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), or for any other purpose.

(13)

“Taxpayer” includes a distributor or other person required to pay a tax imposed under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title).

(14)

“Tobacco products” means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed and other smoking tobacco, snuff, snuff flour, moist snuff, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, but shall not include cigarettes as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(15)

“Untaxed tobacco products” means tobacco products for which the tax required under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title) has not been paid.

(16)

“Wholesale sales price” means the price paid for untaxed tobacco products to or on behalf of a seller by a purchaser of the untaxed tobacco products. [1985 c.816 §15; 2001 c.982 §2; 2003 c.804 §31; 2009 c.717 §1]
Note: The amendments to 323.500 (Definitions for ORS 323.500 to 323.645) by section 11, 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 tobacco products 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.
323.500 (Definitions for ORS 323.500 to 323.645). As used in ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), unless the context otherwise requires:

(1)

“Business” means any trade, occupation, activity or enterprise engaged in for the purpose of selling or distributing tobacco products in this state.

(2)

“Cigar” means a roll for smoking that is of any size or shape and that is made wholly or in part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco and if 1,000 of these rolls collectively weigh more than three pounds. “Cigar” does not include a cigarette, as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(3)

“Consumer” means any person who purchases tobacco products in this state for the person’s use or consumption or for any purpose other than for reselling the tobacco products to another person.

(4)

“Contraband tobacco products” means tobacco products or packages containing tobacco products:

(a)

That do not comply with the requirements of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title);

(b)

That do not comply with the requirements of the tobacco products tax laws of the federal government or of other states;

(c)

That bear trademarks that are counterfeit under ORS 647.135 (Trademark counterfeiting) or other state or federal trademark laws; or

(d)

That have been sold, offered for sale or possessed for sale in this state in violation of ORS 180.486 (Prohibited conduct).

(5)

“Department” means the Department of Revenue.

(6)

“Distribute” means:

(a)

Bringing, or causing to be brought, into this state from without this state tobacco products for sale, storage, use or consumption;

(b)

Making, manufacturing or fabricating tobacco products in this state for sale, storage, use or consumption in this state;

(c)

Shipping or transporting tobacco products to retail dealers in this state, to be sold, stored, used or consumed by those retail dealers;

(d)

Storing untaxed tobacco products in this state that are intended to be for sale, use or consumption in this state;

(e)

Selling untaxed tobacco products in this state; or

(f)

As a consumer, being in possession of untaxed tobacco products in this state.

(7)

“Distributor” means:

(a)

Any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale;

(b)

Any person who makes, manufactures or fabricates tobacco products in this state for sale in this state;

(c)

Any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retail dealers in this state, to be sold by those retail dealers;

(d)

Any person, including a retail dealer, who sells untaxed tobacco products in this state; or

(e)

A consumer in possession of untaxed tobacco products in this state.

(8)

(a) “Inhalant delivery system” means:

(A)

A device that can be used to deliver nicotine in the form of a vapor or aerosol to a person inhaling from the device; or

(B)

A component of a device described in this paragraph or a substance in any form sold for the purpose of being vaporized or aerosolized by a device described in this paragraph, whether the component or substance is sold separately or is not sold separately.

(b)

“Inhalant delivery system” does not include:

(A)

Any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for any other therapeutic purpose, if the product is marketed and sold solely for the approved purpose;

(B)

If sold separately, battery chargers, straps or lanyards; or

(C)

Marijuana items as defined in ORS 475B.015 (Definitions for ORS 475B.010 to 475B.545).

(9)

“Manufacturer” means a person who manufactures tobacco products for sale.

(10)

“Moist snuff” means:

(a)

Any finely cut, ground or powdered tobacco that is not intended to be smoked or placed in a nasal cavity; or

(b)

Any other product containing tobacco that is intended or expected to be consumed without being combusted.

(11)

“Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train or vending machine.

(12)

“Retail dealer” means any person who is engaged in the business of selling or otherwise dispensing tobacco products to consumers. The term also includes the operators of or recipients of revenue from all places such as smoke shops, cigar stores and vending machines, where tobacco products are made or stored for ultimate sale to consumers.

(13)

“Sale” means any transfer, exchange or barter, in any manner or by any means, for a consideration, and includes and means all sales made by any person. It includes a gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), or for any other purpose.

(14)

“Taxpayer” includes a distributor or other person required to pay a tax imposed under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title).

(15)

“Tobacco products” means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed and other smoking tobacco, snuff, snuff flour, moist snuff, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, and inhalant delivery systems, but does not include cigarettes as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(16)

“Untaxed tobacco products” means tobacco products for which the tax required under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title) has not been paid.

(17)

“Wholesale sales price” means the price paid for untaxed tobacco products to or on behalf of a seller by a purchaser of the untaxed tobacco products.

Notes of Decisions

Taxpayer, who did not own store that ultimately sold tobacco products, but who paid for tobacco products on behalf of store is liable for taxes because taxpayer caused tobacco products to enter this state as "distributor." Downer v. Dept. of Revenue, 20 OTR 273 (2011)

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