Oregon Revised Statutes

Chapter 323 — Cigarettes and Tobacco Products

162 sections

323.005 Short title

ORS 323.005 to 323.482 may be cited as the Cigarette Tax Act.

323.010 Definitions for ORS 323.005 to 323.482

As used in ORS 323.005 to 323.482, unless the context requires otherwise: “Cigarette” means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use and consists of or contains: Any roll of tobacco wrapped in paper or in any substance not containing tobacco; Tobacco, in any form, that is functional in the pro…

323.015 “Distribution,” “distributor” and “distributor engaged in business in this state” defined

As used in ORS 323.005 to 323.482, unless the context requires otherwise: “Distribution” includes: The sale in this state of untaxed cigarettes. The use or consumption in this state of untaxed cigarettes. The receipt or retention in this state of untaxed cigarettes at a place of business where cigarettes are customarily sold or offered for sale to consum…

323.030 Tax imposed; rate; exclusiveness; only one distribution taxed

Every distributor shall pay a tax upon distributions of cigarettes at the rate of 29 mills for the distribution of each cigarette in this state. The taxes imposed by ORS 323.005 to 323.482 are in lieu of all other state, county or municipal taxes on the sale or use of cigarettes. Any cigarette with respect to which a tax has been prepaid under ORS 323.068 …

323.031 Additional tax imposed; rate

Notwithstanding ORS 323.030 (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. Notwithstanding ORS 323.030 (2) or subsection (1) of this section and in addition to and not in lieu of any other tax, every dist…

323.035 Distributions by manufacturers to licensed distributors exempted

The taxes imposed by ORS 323.005 to 323.482 do not apply to distributions of cigarettes by the manufacturer to a licensed distributor.

323.040 Sales to common carriers in interstate or foreign passenger service exempted; tax on carriers

The taxes imposed by ORS 323.005 to 323.482 do not apply to the sale of cigarettes by a distributor to a common carrier engaged in interstate or foreign passenger service or to a person authorized to sell cigarettes on the facilities of the carrier. Whenever cigarettes are sold by distributors to common carriers engaged in interstate or foreign passenger ser…

323.045 [1965 c.525 §23; repealed by 1999 c.602 §1]repealed

No operative statutory text appears at this designation in the selected edition.

323.050 Storage in bonded warehouses exempted

The taxes imposed by ORS 323.005 to 323.482 do not apply to cigarettes stored in a bonded warehouse and that are nontax paid under the provisions of chapter 52 of the Internal Revenue Act of 1954, as amended.

323.055 Sales to federal installations and veterans’ institutions exempted

The taxes imposed by ORS 323.005 to 323.482 do not apply to: The sale of cigarettes to United States Army, Air Force, Navy, Marine Corps, Coast Guard, Space Force, National Oceanic and Atmospheric Administration or Public Health Service of the United States Department of Health and Human Services exchanges and commissaries and Navy or Coast Guard ships’ sto…

323.060 Consumer exemption; payment of tax in certain cases

The taxes imposed by ORS 323.005 to 323.482 do not apply to the use or consumption of untaxed cigarettes transported to this state in a single lot or shipment of not more than 199 cigarettes, or of not more than 199 untaxed cigarettes obtained at one time from any of the instrumentalities listed in ORS 323.055 (1). Any taxes resulting from a distribution of…

323.065 Claim for exemption

Any claim for exemption from tax under ORS 323.005 to 323.482 shall be made to the Department of Revenue in the manner the department prescribes.

323.068 Prepayment of tax

Every distributor who sells or possesses for sale unstamped cigarettes in this state shall prepay all taxes imposed under ORS 323.005 to 323.482 prior to the sale of the cigarettes to any person in Oregon by purchasing cigarette tax stamps sold pursuant to ORS 323.005 to 323.482 and affixing those stamps to the unstamped packages of cigarettes.

323.070 [1965 c.525 §26; repealed by 1971 c.416 §3]repealed

No operative statutory text appears at this designation in the selected edition.

323.075 Distributor to collect tax on certain sales

Every distributor engaged in business in this state and selling or accepting orders for cigarettes with respect to the sale of which the taxes imposed by ORS 323.005 to 323.482 are inapplicable shall, at the time of making the sale or accepting the order or, if the purchaser is not then obligated to pay the taxes with respect to the distribution of the cigar…

323.080 Manufacturers’ agreements for prepayment

Manufacturers may enter into agreements with the Department of Revenue for the prepayment of the tax on nonexempt cigarettes given away for advertising and any other purpose.

323.085 Presumptions regarding distribution and prepayment of tax

Unless the contrary is established, it shall be presumed that all cigarettes acquired by a distributor are untaxed cigarettes, and that all cigarettes manufactured in this state or transported to this state, and no longer in the possession of the distributor, have been distributed. All taxes paid pursuant to the provisions of ORS 323.005 to 323.482 are inte…

323.086 [1989 c.866 §3; repealed by 1995 c.79 §179]repealed

No operative statutory text appears at this designation in the selected edition.

323.087 [1989 c.866 §4; repealed by 1995 c.79 §179]repealed

No operative statutory text appears at this designation in the selected edition.

323.089 [1989 c.866 §5; repealed by 1995 c.79 §179]repealed

No operative statutory text appears at this designation in the selected edition.

323.091 [1989 c.866 §6; repealed by 1995 c.79 §179]repealed

No operative statutory text appears at this designation in the selected edition.

323.105 Distributor’s license

Any person engaging or seeking to engage in the sale of cigarettes as a distributor shall file an application for a distributor’s license with the Department of Revenue. The application shall be on a form prescribed by the department. A distributor shall apply for and obtain a license for each place of business at which the distributor engages in the busine…

323.106 Certification of intent to comply with reporting, recordkeeping and directory participation requirements

A person who files an application for a distributor’s license under ORS 323.105 shall include with the application a written statement certifying that the person will comply with the provisions of ORS 180.435 and 180.440.

323.107 Wholesaler’s license

Any person engaging or seeking to engage in the sale of cigarettes as a wholesaler shall file an application for a wholesaler’s license with the Department of Revenue. The application shall be on a form prescribed by the department. A person may not engage in business as a wholesaler without a license. A wholesaler’s license may be canceled, suspended, revok…

323.110 Security required for licensing; conditions of bond

The Department of Revenue, to ensure compliance with ORS 323.005 to 323.482, shall require a licensee or an applicant for a license as distributor to deposit with it such security as the department may determine. The amount of the security shall be fixed by the department but shall not be greater than two times the estimated average monthly liability shown i…

323.115 Provision for withdrawal of surety

Every bond shall contain a provision substantially to the effect that when the surety exercises its right to withdraw as surety, the withdrawal shall be effective on the first day of the calendar month after receipt of the notice by the Department of Revenue if the notice is received on or before the 15th day of the month, otherwise the withdrawal shall be e…

323.120 Form of security

In lieu of a bond or bonds a distributor, under such conditions as the Department of Revenue may prescribe, may deposit with the State Treasurer an amount of lawful money equivalent to the amount of the bond or bonds otherwise required, or the distributor may deposit an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008,…

323.125 Liquidation of security to pay delinquency

Upon receipt of a certificate of the Department of Revenue setting forth the amount of a distributor’s delinquencies, the State Treasurer shall pay to the department the amount so certified from the money deposited with the State Treasurer by the distributor or from the amounts received from the sale of bonds or other obligations deposited with the State Tre…

323.130 Issuance and display of license; circumstances for not issuing license; appeal

Upon receipt of a completed application, the statement required by ORS 323.106 and bonds or other security required by the Department of Revenue under ORS 323.005 to 323.482, the department may issue a distributor’s license to the applicant. A separate license shall be issued for each place of business of the distributor within the state. A license is valid …

323.135 [1965 c.525 §40; 1971 c.734 §36; 1995 c.650 §41; repealed by 2003 c.804 §68]repealed

No operative statutory text appears at this designation in the selected edition.

323.140 Cancellation, revocation or suspension of license; appeal

The Department of Revenue may cancel, revoke or suspend the license held by a distributor whenever the distributor fails to: Pay any tax or penalty due under ORS chapter 323; Otherwise comply with any provision of ORS chapter 323 or any rule thereunder; or Comply with any other state or federal cigarette tax law. The department may not issue a new licens…

323.155 [1965 c.525 §42; 1999 c.62 §1; repealed by 2003 c.804 §68]repealed

No operative statutory text appears at this designation in the selected edition.

323.160 Tax stamps; rules

The Department of Revenue shall furnish cigarette tax stamps for sale to distributors required under ORS 323.068 to prepay the taxes imposed under ORS 323.005 to 323.482. Stamps shall be designed according to specifications and denominations prescribed by the department. The department shall prescribe by rule the method and manner in which stamps are to be …

323.165 Sale of stamps

Unaffixed stamps shall not be sold, exchanged or in any manner transferred by a distributor to another person without prior written approval of the Department of Revenue. With the approval of the Oregon Department of Administrative Services, the Department of Revenue may enter into contracts with financial institutions to act as the department’s agents for …

323.170 Payment for stamps; distributor compensation

Stamps shall be sold to a licensed distributor at their denominated values less a sum allowed as compensation to a distributor for services in affixing stamps to packages as required by ORS 323.005 to 323.482. Payment for stamps shall be made at the time of purchase, provided that a licensed distributor, subject to the conditions and provisions of ORS 323.00…

323.175 Application for credit purchases of stamps

A licensed distributor may apply to the Department of Revenue to fix the maximum amount of deferred-payment purchases of stamps that the distributor may make in any calendar month. Upon receipt of the application and the security deposit required pursuant to ORS 323.110, the department shall fix the maximum amount. The department at any time may designate th…

323.180 Authorization of agent; revocation

A distributor shall authorize in writing those persons who may order purchases of stamps for the account of the distributor at a location where stamps are sold. The authorization shall continue in effect until written notice of revocation of the authority is delivered at the sales location in a manner prescribed by the Department of Revenue.

323.185 Date when payment for credit purchases due; extension

Amounts owing for stamps purchased on the deferred-payment basis for a calendar month shall be due and payable on or before the 20th day of the next calendar month. Payments shall be made by a remittance payable to the Department of Revenue. The department for good cause may extend the time for paying any amount owing for stamps purchased on the deferred-pa…

323.190 Suspension of credit

The Department of Revenue may suspend without prior notice a distributor’s privilege to purchase stamps on the deferred-payment basis or may reduce the amount of permissible monthly purchases fixed for the distributor, if the distributor fails to pay promptly for stamps when payment is due, if the bond or bonds of the distributor are canceled, become void, i…

323.195 Penalty for nonpayment of credit purchase; interest

Any distributor who fails to pay any amount owing to the purchase of stamps within the time required, shall pay a penalty of 10 percent of the amount due in addition to the amount plus interest at the rate established under ORS 305.220 from the date on which the amount became due and payable until the date of payment. (Administration)

323.205 Manufacturers’ reports

Every manufacturer selling and shipping cigarettes into this state to other than a distributor licensed by this state shall deliver with each sale or consignment of cigarettes a written statement containing the name or trade name of both the seller and the purchaser, the date of delivery, the quantity of cigarettes, and the trade name or brand thereof, and w…

323.210 [1965 c.525 §55; repealed by 1971 c.260 §1 (323.211 enacted in lieu of 323.210)]repealed

No operative statutory text appears at this designation in the selected edition.

323.211 Posting of certain information on vending machines required; seizure for failure to comply

Every distributor and dealer or other person engaging in the sale of cigarettes through the use of one or more vending machines, must affix in a conspicuous place on each machine, a card or decal bearing the name, telephone number, address, and place of business of the operator or owner who regularly places cigarettes in the vending machine. If a person fail…

323.215 Records of vending machine operators

Every distributor and dealer or other person engaging in the sale of cigarettes through the use of one or more vending machines shall keep a detailed record of each vending machine operated for the sale of cigarettes, showing the location of the machine and the date of placing the machine on location.

323.220 Maintenance and preservation of records

Any distributor and any person dealing in, transporting or storing cigarettes in this state shall keep, on the premises, receipts, invoices and other pertinent records related to cigarette transactions, transportation or storage, in such form as the Department of Revenue may require. Each record shall be preserved for five years from the time to which it rel…

323.225 Transporters’ permits and records

Any transporter seeking to possess or acquire untaxed cigarettes for transportation or transport upon the highways, roads or streets of this state shall obtain a permit from the Department of Revenue authorizing the transporter to possess or acquire for transportation or transport the untaxed cigarettes, and shall have the permit in the transporting vehicle …

323.230 Examination of records by department; supplemental reports; rules

The Department of Revenue or its authorized representative, upon oral or written demand, may make such examinations of the books, papers, records and equipment of persons dealing in, transporting, or storing cigarettes and such other investigations as it may deem necessary in carrying out the provisions of ORS 323.005 to 323.482. In addition to any other rep…

323.235 Subpoenas; enforcement

The Department of Revenue shall have authority, by order or subpoena to be served with the same force and effect and in the same manner that a subpoena is served in a civil action in the circuit court, or the Oregon Tax Court, to require the production at any time and place it may designate of any books, papers, accounts or other information necessary to the…

323.240 Search warrants; seizure and forfeiture

Whenever the Department of Revenue has good reason to believe that any cigarettes are being kept, sold, offered for sale or given away in violation of the provisions of ORS 323.005 to 323.482 or rules issued under its authority, it may make affidavit of that fact, describing the place or thing to be searched, before any judge of any court in this state, and …

323.245 Forfeiture of cigarettes and other objects; sale or redemption of other objects

Whenever the Department of Revenue discovers any cigarettes subject to tax under ORS 323.005 to 323.482 and with respect to which the tax has not been paid or prepaid, if prepayment is required under ORS 323.068, it is hereby authorized and empowered forthwith to seize and take possession of the untaxed cigarettes together with any vending machine or recepta…

323.248 Seizure and forfeiture of contraband cigarettes; appeal

Any contraband cigarettes found by an authorized representative of the Department of Revenue or any law enforcement agency may be immediately seized and subject to forfeiture. If seized and forfeited under this subsection, the cigarettes shall be destroyed. Notwithstanding ORS 305.280 or 323.416, a seizure and forfeiture made under this section may be appea…

323.250 Exchanges of information with other governmental units

To promote administrative and regulatory efficiency and compliance with laws regulating or taxing cigarettes, the Department of Revenue may transmit information obtained under ORS 323.005 to 323.482 to the proper officers of governmental units inside and outside Oregon that: Regulate or tax tobacco products or enforce laws relating to tobacco products; and …

323.255 Rewards for information

The Department of Revenue may pay rewards to persons, other than officers or employees of the department, furnishing information that leads to the recovery of tax from other persons guilty of violating the provisions of ORS 323.005 to 323.482. Such rewards shall not exceed 10 percent of the net amount of tax, penalty and interest recovered by suit or otherwi…

323.305 Determination of amounts unpaid

If a distributor fails to make payment for stamps when payment is due, the Department of Revenue may compute and determine from any available records and information the amount required to be paid, including interest and penalties. One or more determinations may be made of the amount due for one or for more than one purchase. In making a determination the de…

323.310 [1965 c.525 §67; repealed by 2005 c.94 §108]repealed

No operative statutory text appears at this designation in the selected edition.

323.315 [1965 c.525 §66; 1982 s.s.1 c.16 §18; repealed by 2005 c.94 §108]repealed

No operative statutory text appears at this designation in the selected edition.

323.318 Refund when increase in cigarette tax is not continued

If an increase in cigarette tax imposed under ORS 323.005 to 323.482 is provided by law and the increase provided is for a limited time period, then at such time as the increase expires and is not reenacted or otherwise by law continued, the Department of Revenue may enter into a cigarette tax refund or credit agreement with any distributor. The cigarette ta…

323.320 Refunds for unused stamps and for unsalable or destroyed cigarettes; interest; rules

The Department of Revenue shall, pursuant to rule, refund or credit to a distributor the denominated values, less the discount given on their purchase, of: Any unused or damaged stamps; or Stamps affixed to packages of cigarettes that, prior to or after distribution, have become unfit for use or unsalable or have been destroyed, returned for credit or repl…

323.325 Limitation period on claim for refund

No refund or credit for amounts overpaid for the purchase of stamps shall be allowed or approved after three years from the due date for payment of the purchase for which the overpayment was made, or with respect to a determination made pursuant to ORS 323.005 to 323.482, after six months from the date the determination becomes final, or after six months fro…

323.330 Interest on certain refunds

Unless the refund is one described in ORS 323.320, interest shall be computed, allowed and paid upon any overpayment for the purchase of stamps at the rate established under ORS 305.220 for a period beginning 45 days after the due date for payment of the purchase for which the overpayment was made or on the date of the payment, whichever is later, and ending…

323.335 Date when payment or prepayment of tax is due

Each distributor shall, along with the report filed as prescribed under ORS 323.340, submit quarterly a remittance payable to the Department of Revenue for the amount of tax due, but not yet paid or prepaid, under ORS 323.005 to 323.482. If the tax imposed under ORS 323.005 to 323.482 is not prepaid through the use of stamps, the tax shall be due and payabl…

323.340 Reporting requirements for distributors

On or before the 20th day of January, April, July and October, every distributor shall file on forms prescribed by the Department of Revenue a report containing any information the department may require to carry out the purposes of ORS 323.005 to 323.482. A distributor holding more than one distributor’s license and having centralized accounting may file o…

323.343 Report by persons with cigarette activity; forms

On or before the 20th day of January, April, July and October, every person who is not a distributor and who had cigarette activity in this state during the preceding calendar quarter shall file on forms prescribed by the Department of Revenue a report containing any information the department may require to carry out the purposes of ORS 323.005 to 323.482. …

323.345 [1965 c.525 §74; repealed by 1971 c.416 §3]repealed

No operative statutory text appears at this designation in the selected edition.

323.350 [1965 c.525 §75; 1971 c.416 §2; repealed by 1999 c.62 §24]repealed

No operative statutory text appears at this designation in the selected edition.

323.355 Report of sales on common carriers in interstate or foreign passenger service

On or before the 20th day of each month the common carriers and authorized persons specified in ORS 323.040 shall file with the Department of Revenue a report of the sales of cigarettes made by them on the facilities of the carriers in Oregon in the preceding calendar month in such detail and form as the department may prescribe, submitting with the report t…

323.360 Report by consumers

Any consumer or user subject to the tax resulting from a distribution of cigarettes and from whom the tax has not been paid shall on or before the 20th day of the month following receipt of cigarettes file with the Department of Revenue a report of the amount of cigarettes received by the consumer or user in the preceding calendar month in the detail and for…

323.365 Extension of time for reports and payment of tax; interest

The Department of Revenue for good cause may extend the time for making any report or paying any amount of tax required under ORS 323.005 to 323.482. The extension may be granted at any time provided a request is filed with the department within or prior to the period for which the extension may be granted. The department may not grant an extension of more t…

323.380 [1965 c.525 §79; 1982 s.s.1 c.16 §20; repealed by 1999 c.62 §16 (323.381 enacted in lieu of 323.380)]repealed

No operative statutory text appears at this designation in the selected edition.

323.381 Failure to pay tax or timely file report

The provisions of ORS 314.400 apply to a person required to pay a tax due or file a report or return under ORS 323.005 to 323.482 who fails to timely pay the tax due or who fails to timely file the report or return required.

323.385 Jeopardy determinations

If the Department of Revenue believes that the collection of any amount of tax required to be paid by any person under ORS 323.005 to 323.482 will be jeopardized by delay, it shall thereupon make a determination of the amount of tax, noting that fact upon the determination. The amount determined is immediately due and payable, with interest and penalty as pr…

323.390 Collection of unsecured, unpaid tax after deficiency or jeopardy determination; collection charge; warrants

If any tax imposed by ORS 323.005 to 323.482 or any portion of such tax is not paid within 30 days after notice of a deficiency determination is given pursuant to ORS 323.403 or of a tax determined under ORS 323.385, and no provision is made to secure the payment thereof by bond, deposit or otherwise, pursuant to regulations promulgated by the Department of …

323.391 Withholding warrant procedures; application for collection of unpaid cigarette taxes

The Department of Revenue may employ the provisions of ORS 305.182 to file warrants issued against a taxpayer for unpaid cigarette taxes in the Office of the Secretary of State.

323.401 Refund agreement with governing body of Indian reservation; appropriation for refunds

The Department of Revenue is authorized to enter into a cigarette tax refund agreement with the governing body of any Indian reservation in Oregon. The agreement may provide for a mutually agreed upon amount as a refund to the governing body of any cigarette tax prepaid on sales of cigarettes to Indians upon the reservation and paid into the State Treasury. …

323.403 Application of other statutes

Except as otherwise provided in ORS 323.005 to 323.482 or where the context requires otherwise, the provisions of ORS chapters 305 and 314 as to the audit and examination of returns, periods of limitation, determination of and notices of deficiencies, assessments, liens, delinquencies, claims for refund and refunds, conferences, appeals to the Oregon Tax Cou…

323.404 Disclosure and sharing of information between Department of Revenue and Oregon Health Authority

Notwithstanding the confidentiality provisions of ORS 323.403, the Department of Revenue may disclose information received under ORS 323.005 to 323.482 to the Oregon Health Authority to carry out the provisions of ORS 167.750 to 167.780, 431A.175 or 431A.183. The authority may disclose information obtained pursuant to ORS 431A.175 or 431A.183 to the departm…

323.405 [1965 c.525 §81; repealed by 1977 c.870 §55 (323.416 enacted in lieu of 323.405, 323.410 and 323.415)]repealed

No operative statutory text appears at this designation in the selected edition.

323.406 Disclosure of license information

Notwithstanding ORS 323.403, information on the license of a distributor or wholesaler is not confidential. The Department of Revenue may publicly disclose or publish a list of names of distributors or wholesalers, along with any other information set forth on a license.

323.410 [1965 c.525 §82; repealed by 1977 c.870 §55 (323.416 enacted in lieu of 323.405, 323.410 and 323.415)]repealed

No operative statutory text appears at this designation in the selected edition.

323.415 [1965 c.525 §§83,84; repealed by 1977 c.870 §55 (323.416 enacted in lieu of 323.405, 323.410 and 323.415)]repealed

No operative statutory text appears at this designation in the selected edition.

323.416 Appeals to Tax Court

Except as otherwise provided in ORS 323.005 to 323.482, any person aggrieved by an act or determination of the Department of Revenue or its authorized agent under ORS 323.005 to 323.482 may appeal to the Oregon Tax Court in the time and manner provided in ORS 305.404 to 305.560. These appeal rights shall be the exclusive remedy available to determine the per…

323.420 Venue; department certificate as evidence

The violation of any provision of ORS 323.005 to 323.482 or any rule adopted thereunder shall be deemed an act committed in part at the office of the Department of Revenue in Salem, Oregon, and venue shall lie in Marion County, Oregon. The certificate of the department to the effect that a tax has not been prepaid or paid, that a return has not been filed o…

323.435 Actions by Attorney General; limitation on actions; authority

In addition to all other remedies specified in ORS 323.005 to 323.482, action may be brought by the Attorney General, at the request of the Department of Revenue, in the name of the state, to recover the amount of any taxes, penalties and interest due under ORS 323.005 to 323.482, if the action for recovery is commenced within three years from the time the t…

323.440 Department to enforce ORS 323.005 to 323.482; rules; personnel

The Department of Revenue shall enforce the provisions of ORS 323.005 to 323.482 and may prescribe, adopt and enforce rules and regulations relating to the administration and enforcement of ORS 323.005 to 323.482. The department may employ accountants, auditors, investigators, assistants, and clerks necessary for the efficient administration of ORS 323.005 …

323.455 Distribution of certain cigarette tax revenues

All moneys received by the Department of Revenue from the tax imposed by ORS 323.030 (1) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. The department may pay expenses for administration and enforcement of ORS 323.005 to 323.482 out of moneys received from the tax imposed under ORS 323.030 (1), after…

323.457 Distribution of additional tax proceeds

Moneys received under ORS 323.031 (1) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. After the payment of refunds: 29.37/30 of the moneys shall be credited to the Oregon Health Authority Fund established under ORS 413.101; 0.14/30 of the moneys are continuously appropriated to the Oregon Department…

323.459 Disposition of further tax proceeds; payment of expenses for administration and enforcement

All moneys received by the Department of Revenue from the tax imposed by ORS 323.031 (2) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. The department shall pay expenses for administration and enforcement of ORS 323.005 to 323.482 out of moneys received from the tax imposed under ORS 323.031 (2). Mon…

323.460 [1965 c.525 §106; repealed by 1969 c.229 §3]repealed

No operative statutory text appears at this designation in the selected edition.

323.480 Civil and criminal penalties for violations of ORS 323.005 to 323.482; fine for preventing entry or examination; forfeiture; appeal

A civil penalty may be imposed by the Department of Revenue on any person who violates any provision of ORS 323.005 to 323.482. A civil penalty imposed under this subsection may not exceed $1,000 per violation. A penalty imposed under this section may be appealed to the magistrate division of the tax court. Appeal of a magistrate decision may be made as pr…

323.482 Offense of unlawful distribution of cigarettes; forfeiture; injunctive relief

A person commits the crime of unlawful distribution of cigarettes if the person knowingly sells or distributes, possesses or transports for sale or distribution or imports for sale or distribution cigarettes that do not comply with ORS 323.005 to 323.482 or 323.850 to 323.862, the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331 et seq.), 19 U.…

323.500 Definitions for ORS 323.500 to 323.645

As used in ORS 323.500 to 323.645, unless the context otherwise requires: “Business” means any trade, occupation, activity or enterprise engaged in for the purpose of selling or distributing tobacco products in this state. “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 th…

323.505 Tax imposed on distribution of tobacco products other than oral nicotine products; rate

A tax is hereby imposed upon the distribution of tobacco products in this state. The tax imposed by this section is intended to be a direct tax on the consumer, for which payment upon distribution is required to achieve convenience and facility in the collection and administration of the tax. The tax shall be imposed on a distributor at the time the distribu…

323.508 Tax imposed on distribution of oral nicotine products; rate

In addition to and not in lieu of any other taxes, a tax is imposed on the distribution of oral nicotine products in this state. The tax imposed by this section is intended to be a direct tax on the consumer, for which payment upon distribution is required to achieve convenience and facility in the collection and administration of the tax. The tax shall be i…

323.510 Dates for payment of tax; returns; extension; interest

Except as otherwise provided in ORS 323.500 to 323.645, the tax imposed by ORS 323.505, 323.508 and 323.565 shall be paid by each distributor and each common carrier or authorized person specified in ORS 323.565 to the Department of Revenue on or before the last day of January, April, July and October of each year for the preceding calendar quarter. With ea…

323.515 Exemption for tobacco products not subject to taxation by state

The tax imposed by ORS 323.505 and 323.508 does not apply with respect to any tobacco products which under the Constitution and laws of the United States may not be made the subject of taxation by this state.

323.520 Application for distributor license

Any person engaging or seeking to engage in the sale of tobacco products as a distributor shall file an application for a distributor’s license with the Department of Revenue. The application shall be on a form prescribed by the department. A distributor shall apply for and obtain a license for each place of business at which the distributor engages in the b…

323.525 Security; amount

The Department of Revenue may require any person subject to ORS 323.500 to 323.645 to place with the department an amount of security that the department determines is necessary to ensure compliance with ORS 323.500 to 323.645. The amount of the security shall be fixed by the department but, except as provided in subsection (3) of this section, may not be g…

323.530 Issuance of license; display; appeal of license denial

Upon receipt of a completed application, the statement required by ORS 323.520 (3) and any security required by the Department of Revenue under ORS 323.500 to 323.645, the department shall issue a distributor’s license to an applicant. A separate license shall be issued for each place of business of the distributor within the state. Each license issued by th…

323.535 Cancellation, suspension or revocation of license; appeal

The Department of Revenue may cancel, suspend or revoke a license issued to a distributor if the distributor fails to: Pay any tax or penalty due under ORS chapter 323; Otherwise comply with any provision of ORS chapter 323 or any rule adopted thereunder; or Comply with any other state or federal tobacco products tax law. Notwithstanding ORS 305.280, a d…

323.538 Wholesale sales invoices; requirements; presumptions; penalty

A sales invoice for the wholesale sale of tobacco products in this state, including a sales invoice required under ORS 323.540, shall contain the following: The name and address of the seller, the name and address of the purchaser, the date of the sale of tobacco products, the quantity and product description of tobacco products, the price paid for tobacco …

323.540 Records; contents; retention; examination

Any distributor, and any person dealing in, transporting or storing tobacco products, shall keep at each registered place of business complete and accurate records for that place of business, including itemized invoices, of tobacco products held, purchased, manufactured, brought in or caused to be brought in from without the state or shipped or transported t…

323.545 [1985 c.816 §24; repealed by 2003 c.804 §70]repealed

No operative statutory text appears at this designation in the selected edition.

323.550 [1985 c.816 §25; repealed by 2003 c.804 §70]repealed

No operative statutory text appears at this designation in the selected edition.

323.555 Warehouse records; inspection; contents; preservation

Records of all deliveries or shipments of tobacco products from any public warehouse of first destination in this state shall be kept by the warehouse and be available to the Department of Revenue for inspection. The records shall show the name and address of the consignee, the date, the quantity of tobacco products delivered and any other information the de…

323.560 Credit of tax for tobacco products shipped out of state or returned to manufacturer

When tobacco products, upon which the tax imposed under ORS 323.500 to 323.645 has been reported and paid, are shipped or transported by the distributor to retail dealers outside this state, to be sold by those retail dealers, or are returned to the manufacturer by the distributor or destroyed by the distributor, credit for the paid tax may be made to the di…

323.565 Exemption for sales to common carriers engaged in interstate or foreign passenger service; tax on carriers or persons authorized to sell tobacco products on the facilities of carriers

The taxes imposed by ORS 323.500 to 323.645 do not apply to the sale of tobacco products by a distributor to a common carrier engaged in interstate or foreign passenger service or to a person authorized to sell tobacco products on the facilities of a common carrier. Whenever tobacco products are sold by distributors to common carriers engaged in interstate o…

323.570 Transport of untaxed products; permit; bills of lading

Any transporter desiring to possess or acquire untaxed tobacco products for transportation or transport upon the highways, roads or streets of this state shall obtain a permit from the Department of Revenue authorizing such transporter to possess or acquire for transportation or transport the untaxed tobacco products, and shall have the permit in the transpo…

323.575 Administration and enforcement; rules and procedures

The Department of Revenue shall administer and enforce ORS 323.500 to 323.645. The department is authorized to establish those rules and procedures for the implementation and enforcement of ORS 323.500 to 323.645 that are consistent with its provisions and considered necessary and appropriate.

323.580 [1985 c.816 §29; repealed by 2003 c.804 §70]repealed

No operative statutory text appears at this designation in the selected edition.

323.585 Penalty and interest for failure to pay tax or timely file return

The provisions of ORS 314.400 apply to a person who fails to file a return required under ORS 323.500 to 323.645 or fails to pay a tax at the time the tax becomes due, and no extension is granted under ORS 323.510, or if the time granted as an extension has expired and the person fails to file a return or pay a tax.

323.590 [1985 c.816 §31; repealed by 2003 c.804 §70]repealed

No operative statutory text appears at this designation in the selected edition.

323.595 Application of other statutes

Except as otherwise provided in ORS 323.500 to 323.645 or where the context requires otherwise, the provisions of ORS chapters 305 and 314 as to the audit and examination of returns, periods of limitations, determination of and notices of deficiencies, assessments, liens, delinquencies, claims for refund and refunds, conferences, appeals to the Oregon Tax Co…

323.597 Disclosure and sharing of information between Department of Revenue and Oregon Health Authority

Notwithstanding the confidentiality provisions of ORS 323.595, the Department of Revenue may disclose information received under ORS 323.500 to 323.645 to the Oregon Health Authority to carry out the provisions of ORS 167.750 to 167.780, 431A.175 or 431A.183. The authority may disclose information obtained pursuant to ORS 431A.175 or 431A.183 to the departm…

323.598 Disclosure of license information

Notwithstanding ORS 323.595, information on the license of a distributor is not confidential. The Department of Revenue may publicly disclose or publish a list of names of distributors, along with any other information set forth on a license.

323.600 Department determination of amount of tax; deficiency determinations; liens

If, under ORS 323.500 to 323.645, the Department of Revenue is not satisfied with the return of the tax or as to the amount of tax required to be paid to this state by any person, it may compute and determine the amount required to be paid upon the basis of the facts contained in the return or upon the basis of any information within its possession or that m…

323.605 Immediate determination and collection of tax

If the Department of Revenue believes that the collection of any tax imposed under ORS 323.500 to 323.645 or any amount of the tax required to be paid to the state or of any determination will be jeopardized by delay, it shall make a determination of the tax or amount of tax required to be collected, noting that fact upon the determination. The amount determ…

323.607 Time limit for issuing notice of deficiency for substantial reported understatement of gross purchases net of discounts

If the Department of Revenue finds that an amount of gross purchases net of discounts equal to 25 percent or more of the gross purchases net of discounts as reported on the taxpayer’s tobacco products tax return has been omitted from the return, the department may give notice of deficiency as prescribed in ORS 305.265 at any time within five years after the …

323.610 Collection of unpaid tax

If any tax imposed under ORS 323.500 to 323.645, or any portion of the tax, is not paid within the time provided by law and no provision is made to secure the payment of the tax by bond, deposit or otherwise, pursuant to rules adopted by the Department of Revenue, the department may issue a warrant for the payment of the amount of the tax, with the added pen…

323.612 Seizure and forfeiture of contraband tobacco products; appeal

Any contraband tobacco products found by an authorized representative of the Department of Revenue or any law enforcement agency may be immediately seized and subject to forfeiture. If seized and forfeited under this subsection, the tobacco products shall be destroyed. Notwithstanding ORS 305.280, a seizure and forfeiture made under this section may be appe…

323.613 Exchanges of information with other governmental units

To promote administrative and regulatory efficiency and compliance with laws regulating or taxing tobacco products, the Department of Revenue may transmit information obtained under ORS 323.500 to 323.645 to the proper officers of governmental units inside and outside Oregon that: Regulate or tax tobacco products or enforce laws relating to tobacco products…

323.615 Refund agreement with governing body of Indian reservation; appropriation for refunds

The Director of the Department of Revenue is authorized to enter into a tobacco products tax refund agreement with the governing body of any Indian reservation in Oregon. The agreement may provide for a mutually agreed upon amount as a refund to the governing body of any tobacco tax collected under ORS 323.500 to 323.645 in connection with the sale of tobacc…

323.618 Venue; department certificate as evidence

The violation of any provision of ORS 323.500 to 323.645 or any rule adopted thereunder shall be deemed an act committed in part at the office of the Department of Revenue in Salem, Oregon, and venue shall lie in Marion County, Oregon. The certificate of the department to the effect that a tax has not been paid, that a return has not been filed or that info…

323.619 Actions by Attorney General; limitation on actions; authority

In addition to all other remedies specified in ORS 323.500 to 323.645, action may be brought by the Attorney General, at the request of the Department of Revenue, in the name of the state, to recover the amount of any taxes, penalties and interest due under ORS 323.500 to 323.645, if the action for recovery is commenced within three years from the time the t…

323.620 Remedies cumulative

The remedies of the state provided for in ORS 323.500 to 323.645 are cumulative. No action taken by the Department of Revenue or Attorney General constitutes an election by the state to pursue any remedy to the exclusion of any other remedy for which provision is made in ORS 323.500 to 323.645.

323.623 Appeals

Except as otherwise provided in ORS 323.500 to 323.645, any person aggrieved by an act or determination of the Department of Revenue or its authorized agent under ORS 323.500 to 323.645 may appeal to the Oregon Tax Court in the time and manner provided in ORS 305.404 to 305.560. These appeal rights shall be the exclusive remedy available to determine the per…

323.625 Disposition of moneys other than inhalant delivery system revenues or oral nicotine product revenues

All moneys received by the Department of Revenue under ORS 323.500 to 323.645 shall be deposited in the State Treasury and credited to a suspense account established under ORS 293.445. The department may pay expenses for administration and enforcement of ORS 323.500 to 323.645 out of moneys received from the taxes imposed under ORS 323.505 and 323.565. Amoun…

323.627 Disposition of proceeds of tax imposed on inhalant delivery systems

All moneys received by the Department of Revenue under the tax imposed on inhalant delivery systems by ORS 323.505 shall be deposited in the State Treasury and credited to a suspense account established under ORS 293.445. After the payment of refunds or credits arising from erroneous overpayments, the remaining balance shall be distributed as follows: 90 pe…

323.628 Disposition of proceeds of tax imposed on oral nicotine products

The balance of moneys received by the Department of Revenue under the tax imposed on oral nicotine products under ORS 323.508, after payment of expenses, refunds and credits under ORS 323.625, shall be distributed as follows: One-third of the moneys shall be deposited in the Landscape Resiliency Fund established under ORS 477.502; and Two-thirds of the mon…

323.630 Civil and criminal penalties for violations of ORS 323.500 to 323.645; fine for preventing entry or examination

A civil penalty may be imposed by the Department of Revenue on any person who violates any provision of ORS 323.500 to 323.645. A civil penalty imposed under this subsection may not exceed $1,000 per violation. A penalty imposed under this subsection may be appealed to the magistrate division of the tax court in the time and manner prescribed in ORS 305.40…

323.632 Offense of unlawful distribution of tobacco products; forfeiture

A person commits the crime of unlawful distribution of tobacco products if the person knowingly sells or distributes, possesses or transports for sale or distribution or imports for sale or distribution tobacco products that do not comply with ORS 323.500 to 323.645. The offense of unlawful distribution of tobacco products is classified as follows: If the …

323.635 Penalties in ORS 323.630 and 323.632 additional to other penalties

The penalties provided in ORS 323.630 and 323.632 are additional to all other penalties provided under ORS 323.500 to 323.645.

323.640 Tax on distributors in lieu of all other state, county or municipal taxes on sale or use of tobacco

The taxes imposed by ORS 323.505 are in lieu of all other state, county or municipal taxes on the sale or use of tobacco products. Any tobacco product with respect to which a tax has once been imposed under ORS 323.505 shall not be subject upon a subsequent distribution to the taxes imposed by ORS 323.505.

323.645 Short title

ORS 323.500 to 323.645 may be cited as the Tobacco Products Tax Act. TOBACCO DELIVERY SALES

323.700 Definitions for ORS 323.700 to 323.730

As used in ORS 323.700 to 323.730: “Consumer” means an individual who is not a distributor or a retailer. “Delivery sale”: Means a sale of tobacco to a consumer in this state in which: The consumer submits the order for the sale by means of a telephone or other method of voice transmission, a delivery service or the Internet or other online service; or …

323.703 Delivery sales to persons under 21 years of age prohibited

A person may not make a delivery sale of tobacco to a person who is under 21 years of age.

323.706 Requirements for persons accepting delivery sale purchase orders

Subject to ORS 180.441, a person accepting a purchase order for a delivery sale, prior to the first mailing, shipment or other delivery of tobacco to a consumer, shall comply with: The age verification requirements set forth in ORS 323.709; The license requirements set forth in ORS 323.712; The disclosure requirements set forth in ORS 323.715; The report…

323.709 Requirements for persons mailing or shipping tobacco in delivery sales

A person may not mail or ship tobacco in connection with a delivery sale order unless the person, before mailing or shipping the tobacco, does all of the following: Obtains a certification from the prospective consumer that includes a written statement signed by the prospective consumer that: Certifies the prospective consumer’s address and that the prospe…

323.712 Required licenses

A person may not engage in delivery sales of tobacco in this state without first obtaining the applicable distributor’s license under ORS 323.105 or 323.530 and any applicable retailer’s license required by a jurisdiction into which a delivery sale of tobacco is made.

323.715 Notice requirements for delivery sales

The notice required under ORS 323.709 (3) shall include: A prominent and clearly legible statement that tobacco sales to persons under 21 years of age are illegal; A prominent and clearly legible statement that sales of tobacco are restricted to those individuals who provide verifiable proof of age in accordance with ORS 323.709; and A prominent and clear…

323.718 [2003 c.804 §78; 2017 c.701 §13; repealed by 2021 c.179 §13]repealed

No operative statutory text appears at this designation in the selected edition.

323.721 Delivery sales reporting requirements

Prior to delivering, mailing or shipping tobacco in connection with a delivery sale, a person who accepts purchase orders for delivery sales shall file a statement with the Department of Revenue. The statement shall set forth the name, trade name and address of the principal place of business of the seller and any other place of business of the seller. Not …

323.724 Noncompliant delivery sales of tobacco prohibited

A person that accepts a purchase order for a delivery sale of tobacco may not make a delivery sale of tobacco to a person in this state if the delivery sale of tobacco does not comply with the requirements of this chapter.

323.727 Penalties for violating ORS 323.700 to 323.730; seizure and forfeiture

Except as otherwise provided in this section: The first time a person violates a provision of ORS 323.700 to 323.730, the person shall be subject to a penalty of $1,000 or five times the retail value of the tobacco involved in the violation, whichever is greater; and In the case of a second or subsequent violation of ORS 323.700 to 323.730, the person shal…

323.730 Persons who may bring actions

The Attorney General or any person that holds a permit, issued under section 5713 of the Internal Revenue Code, to engage in business as a manufacturer or importer of tobacco products or as an export warehouse proprietor, may bring an action to enforce the provisions of ORS 323.700 to 323.730 or to prevent or restrain violations of ORS 323.700 to 323.730.

323.740 Entry and examination by department

As used in this section, “premises” means a place of business: That is licensed under this chapter; or That the Department of Revenue has reasonable cause to believe is used for the sale or distribution of cigarettes or tobacco products. The Department of Revenue may enter and examine the premises of any person or business at any time an individual is pre…

323.800 Definitions for ORS 323.800 to 323.807

As used in ORS 323.800 to 323.807: “Adjusted for inflation” means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement. “Affiliate” means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For p…

323.803 Findings and purpose

Cigarette smoking presents serious public health concerns to the State of Oregon and to the people of the State of Oregon. The Surgeon General has determined that smoking causes lung cancer, heart disease and other serious diseases, and that there are hundreds of thousands of tobacco-related deaths in the United States each year. These diseases most often do…

323.804 Liability of nonparticipating manufacturer for equity assessment; annual certification; credits or refunds; civil actions; penalties

Except for a Participating Manufacturer, as that term is defined in the Master Settlement Agreement, that is generally performing its financial obligations under the Master Settlement Agreement, a tobacco product manufacturer is liable for an equity assessment for units sold within the State of Oregon after January 1, 2024. The equity assessment is $0.01884…

323.806 Required actions by manufacturers; liability of importers

Any tobacco product manufacturer selling cigarettes to consumers within the State of Oregon (whether directly or through a distributor, retailer or similar intermediary or intermediaries) after October 23, 1999, shall do one of the following: Become a Participating Manufacturer (as that term is defined in section II(jj) of the Master Settlement Agreement) a…

323.807 Assignment of interest in qualified escrow fund to state

Notwithstanding the provisions of ORS 323.806 (2)(b), a tobacco product manufacturer that elects to place funds into a qualified escrow fund pursuant to ORS 323.806 (1)(b) may assign to the state the tobacco product manufacturer’s interest in any funds in the qualified escrow fund. An assignment executed pursuant to subsection (1) of this section is permane…

323.810 Definitions for ORS 323.810 to 323.816

As used in ORS 323.810 to 323.816: “Adjusted for inflation” means increased in accordance with the formula for inflation adjustment set forth in Exhibit F to the Smokeless Tobacco Master Settlement Agreement. “Affiliate” means a person who directly or indirectly owns or controls, is owned or controlled by or is under common ownership or control with anothe…

323.813 Findings and purpose

The use of smokeless tobacco products presents serious public health concerns to the State of Oregon and to the residents of the State of Oregon. The United States Surgeon General has determined that use of smokeless tobacco causes cancer, noncancerous oral conditions and other serious diseases, and that there are hundreds of thousands of tobacco-related dea…

323.816 Required actions by manufacturer

Any tobacco product manufacturer selling smokeless tobacco products to consumers within the State of Oregon (whether directly or through a distributor, retailer or similar intermediary or intermediaries) after September 28, 2009, shall do one of the following: Comply with the requirements imposed on Participating Manufacturers that are set forth in sections…

323.850 Legislative findings

The Legislative Assembly finds that consumers and retailers purchasing cigarettes are entitled to be assured through appropriate enforcement measures that cigarettes they purchase were manufactured for consumption within the United States. The Legislative Assembly declares that it is the intent of ORS 323.850 to 323.862 to align state law with the Federal C…

323.853 Definitions for ORS 323.850 to 323.862

As used in ORS 323.850 to 323.862: “Cigarette” means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use and consists of or contains: Any roll of tobacco wrapped in paper or in any substance not containing tobacco; Tobacco, in any form, that is functional in the product and that, because of its appearanc…

323.856 Tax stamps prohibited on cigarette packages not meeting federal requirements

No tax stamp may be affixed to, or made upon, any package of cigarettes if: The package differs in any respect from all the requirements of the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331 et seq.) on October 23, 1999, for the placement of labels, warnings or any other information upon a package of cigarettes that is to be sold within the …

323.859 Notice; effect of failure to receive notice

Within the 45-day period immediately following October 23, 1999, the Department of Revenue shall issue a notice to: All licensed Oregon cigarette distributors informing the distributors of the licensing provisions of ORS 323.856; and All tobacco retailers and cigarette distributors informing the retailers and distributors of the penalties for holding or se…

323.862 Disclosure of information

The Department of Revenue may disclose information submitted to the department related to cigarettes, tobacco product manufacturers and tobacco retailers to the Attorney General, and such other parties as the Attorney General determines necessary, to monitor and enforce compliance by tobacco product manufacturers with ORS 323.800 to 323.807. Note: See note …