Chapter 5 Oregon Laws 2001
SB 424
Relating to cigarette
taxation; creating new provisions; and amending ORS 323.010 and 323.015.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 323.010 is amended to read:
323.010. (1) “Cigarette” means any [roll for smoking, made wholly or in part of tobacco, irrespective of
size or shape and irrespective of whether the tobacco is flavored, adulterated
or mixed with any other ingredient, where such roll has a wrapper or cover made
of paper or any other material, except where such wrapper is wholly or in the
greater part made of tobacco and 1,000 such rolls weigh over three pounds.]
product that contains nicotine, is
intended to be burned or heated under ordinary conditions of use and consists
of or contains:
(a) Any roll of tobacco
wrapped in paper or in any substance not containing tobacco;
(b) Tobacco, in any
form, that is functional in the product and that, because of its appearance,
the type of tobacco used in the filler or its packaging and labeling, is likely
to be offered to, or purchased by, consumers as a cigarette; or
(c) Any roll of tobacco
that is wrapped in any substance containing tobacco and that, because of its
appearance, the type of tobacco used in the filler or its packaging and
labeling, is likely to be offered to, or purchased by, consumers as a cigarette
described in paragraph (a) of this subsection.
(2) “Cigarette activity
in this state”:
(a) Means importing,
storing or manufacturing cigarettes in this state, or exporting cigarettes out
of this state, in order to sell the cigarettes either within or outside this
state.
(b) Does not include
importing, storing, manufacturing or exporting of cigarettes that are to be
consumed by the person doing the importing, storing, manufacturing or
exporting.
[(2)] (3) “Department” means the Department
of Revenue.
[(3)] (4) “Dealer” includes every person,
other than a manufacturer or a person holding a distributor's license, who
engages in this state in the sale of cigarettes.
(5) “Exporting”
means the act of carrying or conveying goods from a point of manufacture or
storage in this state to a location outside this state and may be further
defined by the department by rule.
(6) “Importing” means
the act of bringing goods to a point of storage in this state from a location
outside this state and may be further defined by the department by rule.
[(4)] (7) “In this state” means within the
exterior limits of the State of Oregon and includes all territory within these
limits owned by or ceded to the United States of America.
[(5)] (8) “Manufacturer” means any person
who makes, manufactures or fabricates cigarettes for sale to distributors.
[(6)] (9) “Package” means the individual
package, box or other container in which retail sales or gifts of cigarettes
are normally made or intended to be made.
[(7)] (10) “Person” includes any individual,
firm, copartnership, joint venture, association, social club, fraternal
organization, corporation, estate, trust, receiver, trustee, syndicate, this
state, any county, municipality, district or other political subdivision of the
state, or any other group or combination acting as a unit.
[(8)] (11) “Sale” includes any transfer of
title or possession for a consideration, exchange or barter, in any manner or
by any means whatsoever, but does not include the sale of cigarettes by a
manufacturer to a distributor.
[(9)] (12) “Transporter” means any person
importing or transporting into this state, or transporting in this state,
cigarettes obtained from a source located outside this state, or from any
person not licensed as a distributor under ORS 323.005 to 323.455 and 323.990.
It does not include a licensed distributor, a common carrier to whom is issued
a certificate or permit by the United States Interstate Commerce Commission to
carry commodities in interstate commerce, or to a carrier of federal tax-free
cigarettes in bond, or any person transporting no more than 200 cigarettes at
any one time.
[(10)] (13) “Untaxed cigarette” means any
cigarette which has not yet been distributed in such manner as to result in a
tax liability under ORS 323.005 to 323.455 and 323.990.
[(11)] (14) “Use or consumption” includes the
exercise of any right or power over cigarettes incident to the ownership
thereof, other than the sale of the cigarettes or the keeping or retention
thereof for the purpose of sale.
[(12)] (15) “Wholesaler” means any dealer who
engages in the sale of cigarettes to any other dealer for purposes other than
use or consumption.
SECTION 2.
ORS 323.015 is amended to read:
323.015. (1) “Distribution” includes:
(a) The sale in this state of untaxed cigarettes.
(b) The use or consumption in this state of untaxed
cigarettes.
(c) 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 consumers.
(d) The placing of cigarettes in vending machines in this
state.
(e) The use or consumption by the first person in
possession in this state of untaxed cigarettes transported to the state in
quantities of more than 200 in a single shipment.
(f) Donations of sample cigarettes or gift cartons by the
manufacturers thereof, except sample packages containing not more than five
cigarettes and labeled as “sample,” “not for sale” or with similar wording.
(2) “Distributor” includes:
(a) Every person who after July 1, 1966, and within the
meaning of the term “distribution” as defined in this section, distributes
cigarettes.
(b) Every person who sells or accepts orders for cigarettes
which are to be transported from a point outside this state to a consumer
within this state.
(c) Notwithstanding the provisions of ORS 323.010 [(3)]
(4), any dealer who serves as the dealer's own distributor or who buys
directly from a manufacturer for resale in this state shall be deemed to be
both a distributor and a dealer under ORS 323.005 to 323.455 and 323.990.
(3) “Distributor engaged in business in this state”
includes any of the following:
(a) Any distributor maintaining, occupying or using,
permanently or temporarily, directly or indirectly, or through a subsidiary or
agent, by whatever name called, an office, place of distribution, sales or
sample room or place, warehouse or storage place or any other place of
business.
(b) A distributor having a representative, agent,
salesperson, canvasser or solicitor operating in this state under the authority
of the distributor or its subsidiary for the purpose of selling, delivering, or
the taking of orders for cigarettes.
SECTION 3.
Section 4 of this 2001 Act is added to
and made a part of ORS 323.005 to 323.455.
SECTION 4.
(1) 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 323.455 and 323.990.
(2) If the department
determines that a report filed under this section reflects cigarette activity
that constitutes distribution in this state, the department may deem the
individual a distributor subject to the provisions of ORS 323.005 to 323.455
and 323.990 that relate to distributors and the distribution of cigarettes.
SECTION 5.
Section 4 of this 2001 Act and the
amendments to ORS 323.010 and 323.015 by sections 1 and 2 of this 2001 Act
apply to cigarette tax reporting periods beginning on or after January 1, 2002.
Approved by the Governor
March 5, 2001
Filed in the office of
Secretary of State March 5, 2001
Approved by the Governor
January 1, 2002
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